euro

The transition from pesetas was no small change but has the euro been good for Catalonia?

Ukraine war fueled inflation crisis pushes European currency lowest level in decades

Cost of flats and cars were counted in the old currency for years after 2002, as idioms stemming from pessetes are still used

On January 1, 2002, Catalonia left behind the peseta, with more advantages than burdens, according to experts

Seat of jailed Oriol Junqueras will be left vacant by his European group

Spain’s effort to reduce its public deficit “has been insufficient”, according to Brussels. Thus, the European Commission (EC) took this Thursday the first step in order to fine Spain, ahead of the Ecofin meeting. The fining process foresees that 20 days after this meeting, the EC could present the suggested fine, which could equal 0.2% of Spain’s GDP. According to a report released this Thursday by the EC, Spain closed 2015 with a 5.1% deficit target, far from the 4.2% established by Brussels. The report concludes that Spain’s fiscal effort fell “significantly short” of what was recommended and even “relaxed in 2015”. “Spain did not reach the intermediate target for the headline deficit in 2015 and is not forecast to put an end to its excessive deficit by 2016”. 

The European Commission attributed to a “human mistake” the differences between the two answers, one in English and one in Spanish, to the same parliamentarian question regarding Catalonia’s push for independence. “We are an organisation of 35,000 people. It is normal that human mistakes do happen” stated EC spokeswoman Mina Andreeva and said that the only assertive version was the English one. “The Commission is an independent authority. Nobody can manipulate it” she emphasised, insisting that the EC’s position in respect to a hypothetical independent territory in the EU has always been clear and the same “since 2012”. Three Catalan MEP’s have sent a joint letter to EC president Jean-Claude Juncker urging him to open a full investigation “to clarify this political scandal”

The Secretary General of the Diplocat, Albert Royo, expects the European Union and Spain to embark on discussions about Catalonia’s independence and its membership of the EU and the Eurozone if pro-independence groups win a “democratic mandate” in the next election, to be held on the 27th of September. During a conference at the Catalan Summer University in Prada, Royo warned that “it’s in no one’s interest” for Catalonia to be expelled from the EU. The diplomat emphasised that Catalonia represents 2.1% of the European GDP, “more than Finland or Greece”, so its expulsion could potentially lead to “the collapse of the euro”.

The Catalan Government and the regional governments of Sicily and Provence are promoting a manifesto requesting the European Union to meet the challenge of the humanitarian crisis taking place at the Mediterranean Sea. ‘We are all Mediterranean’ aims to strengthen the commitment at regional level to face and solve this crisis, since the EU and the Member State governments “are not up to the challenge”. In addition, the Catalan Government also confirmed the organisation of a summit of Mediterranean regions to be held in July in Barcelona “to work together and see in which way the regions can give a more comprehensive answer” to the drama suffered by so many refugees crossing the sea on fragile boats. In Strasbourg, the Vice President of the Catalan Government, Joana Ortega, invited the President of the European Parliament, Martin Schulz, as well as those of Sicily, Provence-Alps-Cote d’Azur and Western Greece, Rosario Crocetta, Michel Vauzelle and Apostolos Katsifaras, and Lampedusa’s Mayor, Giusi Nicolini, to attend the summit.

The Spanish Home Affairs Minister, Jorge Fernández Díaz, linked Islamic terrorism with immigration and organisations working for Catalonia's independence. Fernández Díaz made this controversial statement last week, after the Catalan Government's Police Force arrested 11 alleged jihadists in Greater Barcelona. His words were reacted to by Catalan politicians and opinion makers. However, Fernández Díaz and other members of the Spanish Government have insisted on linking jihadist terrorism with the peaceful movement for Catalonia's independence as well as with immigration in general. On Tuesday, the Catalan Minister for the Presidency, Francesc Homs, accused Fernández Díaz of acting in "a total reckless" way, an attitude that puts "the entire Spain in danger". The Spanish Minister replied to this, saying that he rejected any "lessons about security" from those who want to split from Spain.

The Euromed ministerial conference held in Barcelona on Monday 13 April has ended with agreement on a number of initiatives to fight jihadist terrorism. The informal meeting gathered together the foreign affairs ministers of 22 European Union Member States and 10 southern Mediterranean countries and is the most important Euromed conference since 2008. They discussed irregular immigration, trade and Islamic terrorism. In regard to the latter, they agreed on increasing cooperation and information exchange between them to face this threat, as well as improving the education offered to young people, so as to avoid recruitment by jihadist activists, explained the EU High Representative for Foreign Affairs and Security Policy and European Commission Vice President, Federica Mogherini. Besides this, the Spanish Foreign Affairs Minister, José Manuel García-Margallo, also insisted on his proposal to create an International Penal Court for Terrorism.

In front of the foreign affairs ministers of 22 European Union Member States, those of the southern Mediterranean countries and the Spanish PM, Mariano Rajoy, gathered in Barcelona for a summit on trade and the fight against jihadism, the Catalan Government President, Artur Mas, said in his opening speech that "Catalonia and Barcelona were born as Mediterranean and have developed as both Mediterranean and European". The Catalan President, who addressed the audience in Spanish, English, Catalan and French, also stressed that Catalonia's future horizons are "always Mediterranean and European", underlining "the umbilical cord with Europe and the Carolingian Empire that has never been broken". "We have the vocation of being a Mediterranean and European capital city", he added. In turn, Rajoy highlighted that Barcelona is "the Spanish capital of the Mediterranean".

A strategic gas pipeline is to be built through the Catalan Pyrenees, linking the Iberian Peninsula with France and Central Europe. The Midcat project aims to reduce Europe's dependency on Russian gas by 40%, diversifying the sources of supply. The pipeline should be operational by 2020, announced on Thursday the Spanish Minister for Industry, José Manuel Soria. The day before, French President, François Hollande, Spanish PM, Mariano Rajoy, Portuguese PM, Pedro Passos Coelho, and European Commission President, Jean-Claude Juncker, re-launched the project's construction. Midcat started to be planned in 2007 but it was halted for several years, mainly due to a lack of interest from French companies and institutions, which were not guaranteeing to build their part. Now, the crisis with Russia has reignited the urge to find alternative gas suppliers for Central Europe.