economic crisis

The Popular Legislative Initiative promoted by the Platform is pending debate in the Spanish Parliament. The Mortgage Platform was founded in Barcelona in 2009. Over recent years, it has worked intensively to prevent and ultimately stop people from being evicted from their own homes. Subprime mortgages, very common during the first decade of this century, were one of the main consequences of the property bubble in Spain and have resulted in more than 400,000 foreclosures in the whole of Spain since 2007. This situation is aggravated due to the economic crisis, which increases social inequality and has placed evictions among the first concerns on the political agenda.

Economic recession hit Catalonia even harder in 2012 than in 2011, when it dropped by 0.7%. The contraction was especially severe in the last quarter of the year. In December, Catalonia’s GDP plummeted by 0.6% compared to 3 months previously. The fourth quarter’s poor figures made the Catalan economy contract by 1.3% over 2012. In 2011, it also decreased but at a slower pace, dropping by 0.7%. For the whole of Spain, the economy plummeted by 1.8% in 2012 and by 0.7% over the last quarter of the year, compared to the figures from September 2012. The main reason behind the last quarter’s drop is the decrease in consumption by families, compared to the purchases made in the third quarter, before the VAT increase.

After two days of protests making Barcelona El Prat Airport being without cabs for several hours, taxi union representatives and the Metropolitan Taxi Institute – in charge of managing the sector – have agreed to eliminate the shift system and find another way to reduce the number of taxis on the streets. Taxi drivers have stopped all their protests and they will be using the previous system establishing two days of rest per week. The shift system had been implemented to better pair the availability of taxis to the real demand, which has decreased because of the recession. The system had been approved by Barcelona taxi drivers in a binding referendum. However, one week after its implementation, some of them protested stating that it had reduced their turnover.

Taxi drivers have protested against the new car shifts implemented as of last week. The new shift system affects all Barcelona taxis and it has been designed to reduce the number of cars on the streets in order to increase drivers’ profits by reducing the available taxis at a given time. However, some taxi drivers think the new shifts cause their turnover to drop. For this reason they have decided to protest by not serving Barcelona El Prat Airport or Barcelona Sants Station with cabs on Monday afternoon. The Metropolitan Taxi Institute, in charge of managing the sector, has already announced “talks” with taxi union representatives to “evaluate” the new system.

The Catalan economy contracted by 0.3% between July and September, although its results improved slightly compared to the previous quarter, when it shrunk by 0.5%. The tourism sector continues to grow and internal consumption continues to drop. Compared to a year ago, by the end of September, Catalan GDP has fallen by 1.4%.

Catalonia’s GDP decreased by 0.1% between January and March 2012, which represents a minor drop compared to the last quarter of 2011. However, the Catalan economy has had red numbers for two consecutive quarters and technically enters a recession. The good results in the tourism and export industries improve the macroeconomic figures.

The third plan represents an additional budget cut of €1.5 billion, in order to meet the 1.5% deficit target for this year. The President of the Catalan Government, Artur Mas, said that the plan “guarantees essential services”. He also stated that if the Spanish Government had paid what it owed last year, the current reduction would be halved. The plan decreases budget allocations for public companies, reduces public employee salaries once again, decreases the amount allocated for subsidies, delays investments, privatises some public companies, sells public buildings, and implements the measures decided by the Spanish Government regarding health and education. The opposition criticised the plan for not being concrete and effective enough.

The 15-M Movement, also known as ‘The Indignados’, ‘The Outraged’, or ‘the Spanish Revolution’, which occupied squares throughout Spain in May and June 2011, celebrates its first anniversary. Last summer protesters abandoned the squares and the movement was kept alive in neighbourhood assemblies. One year after the first square occupation, the movement has taken to the streets and squares once again. After a massive demonstration on Saturday May 12th, protesters set up a camp in Catalunya Square in Barcelona, which they will leave on Tuesday. Also in other Catalan squares. They will organise assemblies and debates to gather further support for their programme that aims to change the current system.

The Spanish Economy grew by 0.7% last year, however decreased by 0.3% in the last quarter, because of the “contraction in domestic demand”. The Catalan Finance Minister, Andreu Mas-Colell, said he would review the 0.8% growth prediction for 2012, since the latest data points to an economic slowdown. Besides, the Spanish Deputy Minister for the Economy, Fernando Jiménez Latorre, stated that data for the first term of 2012 “will be similar” to that of the last quarter of 2011 “or a bit worse”; if confirmed, it would mean a recession.

The Spanish Government temporary reduces the VAT on new flat’s purchase, asks the largest and profitable companies to advance money from their corporate tax, and obliges doctors to prescribe generic drugs and not brands. With all those measures, the Spanish Government expects to get 4,900 million extra euros until the end of the year.

French farmers have been protesting against their difficulties by destroying fruit and vegetables from Spain once they entered France to supply European markets. After last weeks angriness and frustration, Catalan farmers decide to answer back by offering, for one hour, their apples and pears for free to all the cars coming from France and explaining in four different languages the reason for their action.

The president of the United States called on Monday evening, the Spanish Prime Minister to discuss the world economic situation, focusing on two main themes, the evolution of debt problems in Europe and the United States, and the growth of world economy.

The Catalan Parliament was under siege by the “indignats” protesters, who have been camping on Catalunya Square for the last month. They tried to impede MPs' access to the park where the Parliament is located. Some MPs arrived on foot and were insulted, pushed or sprayed. Others, including the Catalan President and the Parliament’s President, had to arrive via helicopter or inside police vans. The ‘indignats’ movement condemned “the isolated violent episodes”, but said they have the right to block the Parliament. Today the first voting on the budget was held, which reduces public spending by 10%. Despite the protests, the parliamentary debate took place.

The study is funded by Catalan savings bank ‘la Caixa’ with data at Spanish-level. It reveals, contrary to xenophobic statements that immigrants bring more revenue to the state than the costs they generate. In addition, their presence also brings more services. “We came to the conclusion than the impact of immigration in the Welfare State is clearly positive”, states the coordinator of the study.

This initiative offers free food to people in need and it is a platform involving many organisations. The Food Bank already assists 118,000 people in the Barcelona Metropolitan Area and warns that “the figure is growing”.