Catalan President Artur Mas will give full support to the next Spanish government if it accepts a new fiscal arrangement for Catalonia. Mas says his party, the centre-right nationalist Convergència i Unió, is the only political force able to become a counter-power to the Spanish conservatives, the most likely winners of the next general election
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Robert Casajuana warns, however, that Spain is "getting dangerously close" to offering yields of 7% for 10 year bonds, the point, according to him, "of no return"
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Characterised as one of the most powerful men in combating the Spanish financial crisis, Catalan President Artur Mas presents his forceful economic strategy to the US newspaper
The deal introduces new restrictions on public spending while protecting health, education and social services. The conservatives have asked the Government to change its foreign policy strategy and make it more commercially oriented.
PM Zapatero today proposed an expenditure limit for the Autonomous Communities before the Spanish Parliament . The Spokesperson for the Catalan Executive considers it an attack to self-governance and fiscal autonomy. In addition, he stressed that the Catalan Government is the only administration in Spain, at all levels, that has cut its expenditure by 10% in one year. He also asked the Spanish Government to make its own adjustments and pay what it legally owes to the Communities, and to Catalonia in particular.
The Autonomous Community public debt has increased 26% in the last 12 months and represents now the historic maximum of 11.4% of Spain’s GDP. Spain’s total public debt reached 63.6% of its GDP and totals 679.8 billion euros. The Catalan Government’s debt has reached 34.3 billion euros, 17.2% of Catalonia’s GDP. It raised 33% in the last 12 months, as the Catalan Government’s public deficit was 3.86% in 2010.
The European Commission also recognised "a different effort" to the rest of Spain’s Autonomous Communities. Brussels said so when on Tuesday it asked Spain “to strictly control” the public “deficit and debt of regional governments”, the day after Moody’s rating agency warned about Catalonia’s expected deficit for 2011. The Spanish Government took note from this particular recommendation but not the other made by Brussels, which included increasing energy taxes and VAT. The Catalan Government criticised Moody’s for “creating alarm” with assessments that do not take into account the whole situation. In addition, it denounced how the Spanish Government has reduced its own deficit by transferring it to the Autonomous Communities.