finances

Spain to control Catalan finances with “specific measures”

November 20, 2015 08:01 PM | ACN / Sara Prim

The Spanish government will impose special conditions on Catalonia when transferring funds from the Spanish Liquidity Point (FLA). The aim is to guarantee the “transparency” and “the legal compliance of the payments” as well as “make sure that the funds are destined for the planned activities”, stated Spanish vice-president Soraya Sáenz de Santamaría this Friday. She justified these “specific and additional controls” due to “Catalonia’s singularity” and “the non-fulfilment of its obligations”. Catalonia is set to receive 3,034 million euros from the FLA, which will be subject to these new measures. Current Catalan Finance Minister, Andreu Mas-Colell, responded that the transferring of FLA funds “shouldn’t be conditioned” to whether the Spanish government “likes the Catalan politics or not”. He added that the “dramatisation” of the announcement is part of the 20-D electoral campaign.

Banc Sabadell acquires 100% of TSB shares

August 21, 2015 04:16 PM | ACN

The Catalan bank Sabadell has completed the process of compulsory acquisition of all TSB Banking Group (TSB) shares, thereby taking ownership of 100% of this British entity’s share capital. The move completes the takeover started last spring, when TSB accepted the 1.7bn-pound offer made by Banc Sabadell. Through buying TSB, Banc Sabadell has expanded its international presence, with its percentage of foreign assets growing from 5% to 22%. TSB has 631 branches, 4.6 million customers and 8,600 employees in the United Kingdom.

Economic growth in Catalonia slows to a 0.9% quarterly increase in June

August 6, 2015 09:48 PM | ACN

The Catalan GDP increased by 0.9% between April and June this year, which is a positive figure but slightly lower than the 1.1% rate registered during the first quarter. However, in annual terms, the Catalan economy grew by 3% in the year to June, which is more than the 2.6% annual growth registered in March. Such a high level of annual growth had not been registered since September 2007, before the financial crisis started. According to the Catalan Finance Ministry, the minor fall off in growth registered between April and June compared to the growth rate from January to March is due to the "extraordinary" 1.1% growth rate of the first quarter. The Ministry stressed that 0.9% growth is still a very positive rate and does not break the trend of the economic recovery, on the contrary proving its strength.

Rajoy to once again invest disproportionately low amount in Catalonia in 2016 budget

August 4, 2015 10:41 PM | ACN

The Spanish Government has presented its budget for 2016 and once again its investment in Catalonia is very far from being in line with the Autonomous Community’s GDP or population share within Spain. According to the planned budget for next year presented this Tuesday (many months in advance for electoral reasons), the Spanish Government plans to allocate only 10.7% of its territorial investment to Catalonia, even though the Catalan economy represents 19% of Spain’s overall GDP and Catalans make up 16% of Spain’s population. The amount planned for 2016 is however a bit higher than that allocated for 2015, which was only 9.5% of Spain’s total, the lowest in many years and widely interpreted to have been in retaliation for independence claims. The amount for 2015 was €1,072.3 million and that for 2016 is €1,179.5 million, which means a 10% increase (+€107 million) but is still one of the lowest investments in decades, both in percentage and absolute terms. Nevertheless, the Madrid-based media has focused on this increase, presenting Catalonia as a clear winner and forgetting about the extremely low investment levels from 2015 and 2016.

Spanish Government rejects reviewing strict 2016 deficit targets for Autonomous Communities

July 30, 2015 09:44 AM | ACN

Despite the fact that all the Autonomous Community governments that are not run by the People's Party (PP) requested the Spanish Executive  – run by the PP – to allow them a greater deficit in 2016 and that Spain's independent fiscal authority Airef also recommended granting regional governments greater deficit targets for next year, the Spanish Finance Minister, Cristóbal Montoro, has rejected doing so. In 2016, the Autonomous Communities will have to close their budgets with less than a 0.3% deficit, "an absurd" and "unrealistic" figure according to the Catalan Finance Minister, Andreu Mas-Colell, who was recently awarded an honorary PhD in Economics by the University of Chicago. The Catalan Government asked for a 0.88% deficit target for 2016. Besides this, next year the Catalan Executive will receive €1.2 billion that should have already been transferred by the Spanish Executive but was not, due to Montoro's tax revenue miscalculations. In addition to this, since economic activity is growing, the Spanish Government will increase the Catalan Executive's funds by €700 million each year from 2016 onwards.

Economy grew 1.1% during first quarter in Catalonia and 0.9% in Spain as a whole

June 19, 2015 09:39 PM | ACN

Catalonia's GDP has increased by 1.1% during the first quarter of the year compared to the last quarter of 2014, while the Spanish economy grew by 0.9% and that of the European Union by 0.5%, according to definitive figures released by the Catalan Statistics Instituted (Idescat) on Friday. In annual terms, Catalonia's economy increased by 2.6% from March 2014 to March 2015, mostly due to the positive evolution of domestic demand and the strength of the export sector. The figures released this Friday improve upon the provisional data that had been announced in May for the first term of 2015, when it was stated that Catalonia’s economy had grown by 0.9% from January to March. With the 1.1% growth finally registered, Catalonia now accumulates 8 consecutive terms of quarterly growth.

BBVA proposes closing 400 Catalunya Banc branches and reducing staff by 2,000

June 10, 2015 10:08 PM | ACN

The Spanish banking giant BBVA, which purchased Catalunya Banc last July, is now proposing to shut down 400 branches of the acquired bank and reduce its staff by 2,000 employees (out of a total of 4,400 currently employed), according to trade union sources. At the end of April, the BBVA announced it would close 285 Catalunya Banc branches and reduce the staff by about 1,700 people. However, this Wednesday the Spanish bank has released higher figures and with this action is kicking off the official negotiation period with trade unions before it registers a mass layoff. The adjustment is to start already this year and would be completed by 2017, with the main part of it taking place during 2016. In theory it should only affect the branches that originally belonged to Catalunya Banc (CX) and the employees who were originally working for the former Catalan savings bank, and not those of the BBVA working in Catalonia. In April, Angel Cano, who is the CEO of the Spanish bank, stated that the adjustment would take place within the new integrated structure, not only in regard to the former CX branches and staff.