education budget

The Government’s draft for the 2017 budget was published in the Parliament’s Official Journal this Tuesday. On Wednesday, the different groups in the Catalan Chamber will be able to present appeals and the whole bill will be discussed on the 20th of December. “This is the best budget possible”, Catalan Vice President and Minister for Economy and Tax Office, Oriol Junqueras, stated right after presenting the draft. “The time of cutbacks is over”, he assured and emphasised that the budget for 2017 has been enhanced in comparison to the previous one “both as a whole and in each department”. Indeed, the budget for 2017 allocates €1.1 billion more to social expenditure than the bill for 2015 – which was extended for 2016. The Health System with €8.7 billion and Education and Universities with €5.5 billion are the areas with the highest amounts allocated.

The Catalan executive and radical left pro-independence CUP are negotiating the fiscal law, the so called Accompaniment Law, for the 2017 budget. The draft is set to include tax reforms as well as the introduction of new taxes especially oriented toward avoiding property speculation. One of the main hurdles has to do with the reform of income tax, which foresees the elimination of tax relief for property purchase for those who earn more than 30,000 euros per year. By applying this modification the Government could collect 11 MEUR in 2018, negotiators estimate. CUP also aimed to increase income tax for those who earn more than 60,000, but this proposal is not apparently on the table.

In times of shrinking public funding, higher tuition fees and fewer scholarships, a controversial new university reform has been approved by the Spanish Government. The so-called "flexibilisation" of Bachelor's degrees or the "3+2" system has been introduced, provoking a wave of protests and criticism across the university community. The new reform allows universities to choose an undergraduate programme length that ranges from 3 to 4 years, abandoning the 4-year scheme adopted in 2010. Then, a one- or two-year Master's will follow. Many fear that it will devaluate undergraduate degrees, obliging students to undertake a Master’s in order to find a decent job. Moreover, as postgraduate tuition fees are substantially higher, some think that the overall price of education is likely to rise, pushing the Spanish university system towards the US model. Other arguments against the reform are: the lack of democratic discussion on the new text, the temporal proximity of the previous reform and the potential increase in disorder within the system.

On Thursday, the Catalan Finance Minister, Andreu Mas-Colell, admitted that Catalonia will not be able to meet the strict 1% deficit target imposed by the Spanish Government for 2014. In fact, the Catalan Executive had previously warned on several occasions that this deficit target was not realistic, despite the great austerity efforts undertaken over the past four years. In addition, despite Spain's economic recovery of 2014 – which is led by Catalonia – and therefore the increase of taxable activity, the Spanish Government will reduce the Catalan executive's funds by €500 million this year while the deficit target becomes stricter. On Wednesday, the Catalan President, Artur Mas, already stated that, considering the austerity measures adopted since 2011, further budget cuts cannot be undertaken in 2014 without dramatically damaging basic public services such as healthcare and education. Instead of relaxing the deficit target or transferring pending funds and debts to the Catalan Government, the Spanish Finance Ministry will reduce the interest rate that the Autonomous Communities have to pay back to 1% for the loans of the Liquifidity Fund (FLA).

Thousands of people – 12,000 according to Barcelona’s local police and 200,000 according to the organisers – demonstrated on Sunday in the streets of Barcelona to protest against the Spanish and Catalan Governments’ austerity measures and “antisocial” budgets. Led by the platform ‘Prou Retallades’ (“Stop Budget Cuts”) , the UGT and CCOO trade-unions, as well as political parties and associations, citizens voiced their disapproval of the new pension reform, working fragility and the latest austerity measures. They also specifically protested against the Catalan and Spanish Governments’ budgets for 2014, which they consider “antisocial”. The demonstration organisers criticised the “blind obedience” of the Catalan and Spanish Executives to the European Commission and the Troika.

The Catalan Government has presented its budget proposal for 2014, which posts a 1% deficit, representing a 35.5% annual reduction and amounting to €1.98 billion, in line with the 2014 deficit targets imposed by the Spanish Government. The budget prioritises healthcare, education and social policies, which represent 71% of the total non-financial spending. Non-financial spending grows by 0.2% and reaches €20.30 billion, while the total spending amounts to €29.31 billion. The Catalan Finance Minister stressed that spending had not been reduced this year since in the last 3 years it had already dropped by 22%. Budget cuts “have reached their limit”, as otherwise “social cohesion” and “the Welfare State” would “be at risk” he said. In 2014 the Catalan Executive will spend the same per inhabitant as it was doing in 2004 taking into account inflation (€1,901).The adjustment for 2014 focuses on increasing revenue by €3.2 billion, mostly through new taxes (€910 million) and the sales of assets and privatisations (€2.32 billion). On top of this, the Catalan Government forecasts a 0.9% economic growth for 2014, leaving behind the recession of 2012 (-1.2%) and 2013 (-1.1%).

On Tuesday the Catalan Council for Constitutional Guarantees (CGE) declared that the Spanish Government decree cutting €3 billion in education does not respect 2 Constitution articles and 5 other articles from Catalonia’s Statute of Autonomy, being thus unconstitutional and going beyond Madrid’s jurisdiction. The Catalan Government following the CGE’s unconstitutionality assessment decided to bring the education decree to the Constitutional Court(TC), as it did last week with Rajoy’s health decree. However, after the Spanish Government threatened to bring approved initiatives from the Catalan Executive to the TC, the Catalan Government decided to modify the decrees through dialogue and bring the decrees to the TC as a last option.

Public university undergraduate students will have to pay between 64 and 100 euros more per year. Those repeating once will pay the same amount, but those taking a course for the third time will pay 60% more. The measure would bring in 20 million euros in one year. 25% of the revenues from the fee increase will be reinvested via scholarships, the first that will be aimed at university students managed by the Catalan Government.

According to date from the General Workers’ Union, Catalonia invested only 3.6% of its GDP to education in 2007, putting the territory behind less developed countries such as Romania and Bulgaria. Also, the number of Catalan students dropping out of university is double than the EU average.