generalitat

The rating agency Fitch reduced Catalonia’s long term debt’s appreciation, going from A to A- because of the expected weak economic growth. Nevertheless, Fitch recognised the efforts to reduce the public deficit carried out by the Catalan Government. Fitch has lowered the debt rating of five Spanish Autonomous Communities and given others a negative perspective for the future. The Catalan Ministry of Finance thought that the reduction is due to “the international situation” and stressed that efforts are already made.

The Barcelona-based energy multinational and the Catalan Government have signed a cooperative agreement. The Catalan President Artur Mas emphasised that the Catalan multinational “is rising to what the country needs” in the current economic context.

The delegation from the Generalitat in the United Kingdom commemorated the National Day at the Tate Modern London, where a major retrospective exhibition of the Catalan painter Joan Miró is currently on display.

“It means that we are not wanted, we are excluded, we are ignored” stated Artur Mas, President of the Catalan Government and leader of the Centre-Right Catalan Nationalist Coalition (CiU). It was the first time he has spoken on the Constitutional amendment limiting the public deficit that has been agreed on only between the PSOE and the PP. The CiU has protested against reforming the Constitution solely on the basis of the agreement of only two parties. Members of the PP and the PSOE have been trying to convince the CiU to support what both parties had previously agreed, and PM Zapatero (from the PSOE) asked the CiU to show some “moderation”.

The Catalan Government approves a support program that will advise the promotion and development of activities from the Union for the Mediterranean Secretariat, whose headquarters are in Barcelona. It will provide advice on Euro-Mediterranean policy and projects, until the UfM has enough resources of its own.

A grant allocated to the poorest, which is supposed to be their only income, was not paid regularly on August 1st as the Catalan Government changed the payment method. The official explanation is that the change was taken to avoid fraud and be able to ensure the sustainability of this grant system. From now on, the 37,000 beneficiaries will have to personally go the bank with a pay check that will be sent to them. In mid-August, most of the beneficiaries had already received the money. The opposition has heavily criticised the Government, which has recognised errors but stressed that many people were getting money without meeting the conditions. 500 beneficiaries and social workers protested on Thursday in Barcelona.

Mas told reporters that he does not enjoy making such cuts but they are necessary to keep Catalonia from bankruptcy

Lex Writer Richard Stovin-Bradford argues in an interview with the CNA that Catalonia “is adopting strong measures” to cut its deficit while some autonomous communities “have not yet reduced the spending” as much.

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

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"

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.