european union

The Intermediterranean Commission of the Conference of Peripheral Maritime Regions of Europe organised its annual Plenary Assembly in Barcelona, since Catalonia currently holds the organisation’s presidency. This organisation brings together 45 regional governments from 9 different Mediterranean countries. For the first time, the Union for the Mediterranean – which brings the 27 European Union Member States and 16 countries from the Northern Africa, the Middle East and the Balkans together – signs a cooperation agreement with an organisation of regional governments. At the signing ceremony, political leaders asked the European Union to pay more attention to the South, as once it did with Eastern Europe.

The €6.6 million project will last for 6 years and will start in Egypt, Morocco and Tunisia. It aims to strengthen the training of logistics sector workers in 10 countries in the Southern Mediterranean area. During the project’s presentation in Barcelona, the European Commissioner for Enlargement and Neighbouring Policy, Stefan Füle, asked for a greater financial commitment from the 43 countries that are members of the Union for the Mediterranean (UfM). He lamented that “it is not healthy” that the European Commission continues to be the main funding source for the UfM. Three years after unveiling its permanent Secretariat in the Catalan capital, the UfM is starting its first projects.

In an interview with ACN, the Head of the EU Foreign Policy Unit of the Centre for European Policy Studies (CEPS), Steven Blockmans argued that “the European Union or the United Nations could play this role” if “both parties, including Madrid, voluntarily accept it”. Besides, Blockmans explained that Catalonia’s and Scotland’s self-determination processes and the possibility that they become independent states “is being debated” in Brussels circles, and it is even mentioned “often”. In addition, he also stated that if Madrid agrees, “a summit would be enough” to take “the political decision” to allow an independent Catalonia to become an EU Member State.

The Catalan capital hosts the Mies van der Rohe Foundation, which delivers this award with the European Commission every two years. Reykjavik’s new Concert Hall and Conference Centre ‘The Harp’, designed by Henning Larsen Architects, Studio Olafur Eliasson and Batterrío, won the 2013 Mies van der Rohe Award, which comes with €60,000 and a small sculpture reproducing the pavilion created by the German architect in Barcelona. In addition, the Spanish architects María Langarita and Víctor Navarro won the Special Mention Award for Young Talent for their music academy in Madrid’s former slaughterhouse (Matadero). The award ceremony took place in Barcelona’s Mies van der Rohe pavilion, in Montjuic.

During the weekend, the Spanish Finance Minister, Cristóbal Montoro, stated that the Catalan Government’s deficit for 2013 will not be above 2%. The Catalan Government has been asking for a 2.1% deficit target, corresponding to a third of the 6.3% that was announced by the Spanish Government as the figure allowed for Spain’s entire public sector. On Friday, several high-level meetings to discuss the issue were held in Barcelona between members of both executives. On Monday, the Spanish Prime Minister, Mariano Rajoy, stated that in his meeting with the President of the Catalan Government, Artur Mas, they did not discuss specific figures. He also stated that no figure will be decided on until the European Union officially confirms Spain’s 6.3% total deficit target.

The deficit target for Spain’s entire public sector has also been raised from 4.5% to 6.3%. The Spanish Government has kept 81% of the deficit for itself while it is only responsible for 50% of Spain’s public spending. The Spanish Government has allowed itself a 5.1% deficit target, while the Autonomous Communities are only allowed a target of 1.2%. The regional governments fund the basic welfare state services and manage more than 35% of Spain’s total public spending. The Catalan Government welcomes the revision but considers it not to be enough. The Catalan Finance Minister, Andreu Mas-Colell, has been insisting that the Autonomous Communities should have at least a third of the total deficit. Therefore, with an overall target of 6.3%, the Catalan Executive should have a target at least 2.1%.

54% of Catalonia’s external sales go to the international market while the remaining 46% go to the rest of Spain. The number of Catalan companies which sold their products outside of Spain in 2012 was 45,000 enterprises, representing a 6.3% increase in relation to the 2011 figures and 11,554 more companies than at the start of the economic crisis. The export sector represented €58.28 billion, which was 28% of Catalonia’s GDP in 2012. The figure represented a 5% increase compared to 2011 and a 15% growth on data from before the economic crisis. Sales outside the European Union increased by 16% last year, especially in Oceania (61%), Africa (24%) and Latin America (21%).

The firm QNORM, located in the Scientific and Technologic Park of the Girona University (UdG), participates in a European project that aims to transform vegetal biomass into plastic. The project, which is called BioConSepT (bio-conversion and separation technology), has a budget of 13 million euros (MEUR), funded by the European Union. The project wants to use vegetal biomass (such as fats, oils and straw) and turn it into plastic in order to reduce the use of petrol.

Catalan first instance courts ordered 25,422 evictions last year, representing 25.1% of the total number in Spain. Two weeks ago the European Court of Justice declared the Spanish Mortgage Law to be abusive towards citizens. Home evictions have increasingly become a social drama in Catalonia and in the whole of Spain, particularly over the last two years, as the crisis became harsher. In 2009, a platform to unite people affected by house evictions was created in Barcelona and it has managed to stop hundreds of cases throughout Catalonia and Spain.

The Spanish Finance Minister, Crístobal Montoro, confirmed that if Brussels relaxes Spain’s total deficit target for 2013, he will share this flexibility with the Autonomous Communities’ governments. A working group has been created to analyse the most convenient formula for this, including that of setting different deficit targets for each Autonomous Community. The Catalan Government celebrated the decision, since it has been asking for it for many months. In addition, the Catalan Finance Minister, Andreu Mas-Colell, stated that he will look for “a smooth relationship” with the Spanish Executive to negotiate the details. On Wednesday, Mas-Colell proposed the idea that deficit targets could be set according to debt levels. In the last few days, the Catalan Government has sent several messages in order to show a willingness to talk to Rajoy’s cabinet about the most important subjects on the table.

The former leader of the European Union diplomacy and now an International Relations professor at the Barcelona-based ESADE business school, Javier Solana, stated that it is “difficult” to believe that such a measure could be implemented in Spain or Italy. Solana, who chairs the EsadeGeo Centre for Global Economy and Geopolitics, highlighted the fact that “it is an unprecedented decision to make all depositors pay” such a tax. According to Solana, this could create “insecurity” and it is “an unfair decision for honest money savers”, despite the measure targeting those who have manipulated Cyprus’ financial system.

Martin Schulz, the President of the European Parliament, while in Barcelona, has asked for a greater involvement by the European Union and its members in the Union for the Mediterranean (UfM), which has its headquarters in the Catalan Capital. This institution was supposed to be essential in the EU’s foreign relations, building a Euro-Mediterranean cooperation space. However, the reality is that since it was founded in 2008 almost no projects have been developed and very few funds have been allocated. The Israel-Palestine conflict and the institutional instability of the Arab Spring are one cause of the paralysis of the UfM, but the lack of engagement of the European Union is also a contributing factor.

Andreu Mas-Colell, the Catalan Government’s Finance Minister, emphasised that a 0.7% deficit objective means implementing an additional budget adjustment of €4.4 billion. This amount represents around 15% of the Catalan Executive’s budget for last year, which had already been reduced over the previous two years. Furthermore, expected revenue will decrease by 1% despite increases in tax, debt interest will grow by €300 million and the amount of spread payments will also increase by €150 million. In such circumstances a €4.4 billion one-year adjustment would blow up public services in Catalonia. Therefore, Mas-Colell urged the Spanish Government to find an agreement, as otherwise no one wants PM Rajoy to act “as the viceroy of Catalonia”.

Earlier this week the Director of the Public Prosecution Office of Catalonia, Martín Rodríguez Sol, was pushed to resign by his boss at a Spanish level, who is directly appointed by Spain’s Government. Rodríguez Sol said in an interview that it was “legitimate” to “allow the people” to decide on their collective future regarding Catalonia’s self-determination process. However, he emphasised that he was not supporting an independence referendum as such because “it does not fit into the current legal framework”, but he suggested that a “legal vote” could be held with the appropriate question being asked. He also stated that legal frameworks should be connected to social realities and should have the option to be changed. On Thursday six members of the European Parliament, representing four Catalan parties, filed a question to the European Commission about the case.

Multinational companies, railway operators, port authorities and government representatives met in the European Parliament to demand a boost of goods transportation by rail in Europe. They are pushing for the use of longer and heavier trains, able to transport more goods at a lower cost, with the consequent increase in competitiveness. These trains would circulate along specific corridors, such as the Mediterranean Railway Corridor, which will link the Gibraltar area with Central and Northern Europe passing through Spain’s Mediterranean ports and main industrial centres. The lobby organising the event, FERRMED, complained about the absence of representatives from the Spanish Government’s train operators.