As carried out on two other occasions in the last year, the Catalan Government is preparing to release of 3,800 retail bonds to get cash. Financial sources informed ACN about the operation, which has not been confirmed by the Catalan Ministry of Economy. The bonds would be offered before November 21st, the day that the bonds issued by the former Catalan Government in autumn 2010 expire.
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 Catalan Government approves the modification of the Worship Centres Law from 2009. Town halls will no longer be obliged to save plots for the construction of new religious centres. No architectonical aspects are banned but the law gives town halls the authority to decide on the conditions of construction regarding aesthetics. In some Catalan towns, there have been complex controversies regarding the construction of mosques in recent years. Some Catalan towns have more than a 30% immigrant population, most of who have arrived in the last 10 years. The current approach is to give the authority to each individual town hall to adapt to its local reality.
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In a solemn ceremony and accompanied by his family and friends, the FC Barcelona manager has received the greatest honorary distinction from the Parliament of Catalonia.
The Catalan Government is reducing public deficit and cutting public spending by 10% this year. All areas are affected, including healthcare, which is one of the departments with a smaller percentage budget reduction. Last August, 25 community health centres (CAP) reduced their opening hours, closing their emergency room during nights and weekends as they were scarcely used; as of this September, another 21 centres in a similar situation have been added to the list. Citizens have been camping in some CAPs to protest about the decision.
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.
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
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.
The Irish company has accused the local administration of not honouring current agreements, in place until 2013. The Catalan President has assured that the Government has absolutely “fulfilled” the current agreements and that the “problems started when these agreements wanted to be modified”. The low-cost airline is in a dispute with the Catalan Government over its continuity in Girona-Costa Brava; Ryanair is asking for an extra 7.5 million euros. The Catalan Minister for Transportation considered Ryanair’s attitude as “blackmail”. The Government announced this evening that it will freeze current negotiations with Ryanair until it has the “assurance” that the Irish company “fulfils what it signed”.
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 International Monetary Fund wants the Spanish Government to “strengthen” the labour market reform, not give up on spending cuts and restructure the financial system. The same day, the Bank of Spain's Governor, Miguel Angel Fernández Ordóñez asked the Spanish Minister for Economy to be “stricter” on the Autonomous Community government’s deficit reduction. The Catalan Minister for Finance said on several occasions that Catalonia would meet the deficit objective for 2011 if the Spanish Government showed some institutional loyalty and paid the money it legally owes to Catalonia.
Public university undergraduate students will have to pay between 64 and 100 euros more per year. Those repeating once will pay the same amount, but those taking a course for the third time will pay 60% more. The measure would bring in 20 million euros in one year. 25% of the revenues from the fee increase will be reinvested via scholarships, the first that will be aimed at university students managed by the Catalan Government.
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.