More than thirty Chinese companies and investment agencies have visited Barcelona in search of business opportunities. The Catalan capital is a gateway to the European market for Asian companies, thanks to its sea port, airport, geographic location and a dynamic and well connected economy. In addition, Barcelona is also a leading centre in the Euro-Mediterranean Area.
Andreu Mas-Colell, former Harvard Professor and the current Catalan Finance Minister, travelled to London to meet with financial representatives. The objective is to explain, first-hand, the Catalan Government’s austerity plans and its efforts to reduce the deficit and to foster the economic recovery. Mas-Colell met with City investors, banks and media, such as the ‘Financial Times’.
The Catalan President, Artur Mas, announced that he along with ministers, deputy ministers, and directors-general would not receive the Christmas bonus this year. The measure affects all the Catalan Government’s higher-ranked staff and is meant to send a message of austerity. 350 people will see their salary reduced, saving 1.8 million euros of public money. It is an answer to doctor and nursing unions, who had asked politicians to reduce their salaries. Last year, higher-ranked officials experienced a 15% salary cut.
The Catalan Government has approved the new Law of Budget Stability, which foresees a gradual and significant reduction of the deficit in the following years. The law permanently fixes an allowed deficit limit of 0.14% of Catalonia’s GDP from 2018, two years earlier than the deadline required by the Spanish Constitution’s modification. According to the Catalan Finance Minister, Andreu Mas-Colell, the law demonstrates Catalonia’s “strong commitment to budget stability”. In addition, the law creates a fund to return public debt, which will be filled with any additional revenues or budget surplus.
The Catalan President Artur Mas has asked the European Union “not to forget about a land that feels European and needs deeper and closer ties with Europe” in the ‘FERRMED Trans-European Cluster Conference’ in Brussels. Previously he has met with the Vice President of the European Commission, responsible for Industry and Entrepreneurship, Antonio Tajani. The Mediterranean Railway Corridor would directly link Central and Northern Europe with Spanish ports and subsequently North Africa.
The current Catalan Government, which took office last Christmas, hired an external auditor to better understand the state of the public finances. Deloitte has increased the Government’s deficit for 2010, from 3.86% to 4.2%, in line with the last data known and internally audited. The Catalan Minister for the Economy, Andreu Mas-Colell, explained that “one out of every three euros spent [in 2010] was not covered by tax revenues”. The main opposition party, which formed part of the previous Government and was in charge of finances, stated that their management cannot be made responsible for the deficit increase, as the deficit calculation criteria has changed.
The presidents of Catalonia, the Valencian Community and the Region of Murcia met in Barcelona to ask the Spanish Government to prioritise the construction and inclusion of the Mediterranean Railway Corridor in the European Transport network. This infrastructure is essential for both the Spanish and European economies, as it would transport freight and passengers non-stop from Gibraltar to Stockholm, passing through Valencia, Barcelona and Lyon. In times of public deficit, there is not enough money to build a railway corridor passing through Madrid, and the Spanish Government has to prioritise the Mediterranean Corridor, which links the main export and industrial centres in the country with Europe.
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 Catalan President says that he will not work with the conservative PP after the Spanish general election if the party “crosses the red line” and tries to push a language agenda which puts at risk the current Catalan educational system. The leader of the PP in Catalonia, Alicia Sánchez Camacho, says Mas should accept the Courts ruling that have obliged the Government to offer Spanish as well as Catalan as a language of instruction at school.
The President urges institutions and citizens to defend the Catalan education system, which has been put at risk following a court order obliging the Government to include Spanish as a school language of instruction. Meanwhile, the Catalan Minister for Education, Irene Rigau, warns that on the 2nd of November the government “will not separate pupils by language”
“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 yields for Spanish 10 year bonds are well over 6% while economic growth remains slow
Mas told reporters that he does not enjoy making such cuts but they are necessary to keep Catalonia from bankruptcy
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 Catalan President has inaugurated the expansion of the facilities of the Boehringer Ingelheim pharmaceutical company in Sant Cugat. Artur Mas stressed that behind the crisis “is always the industry, companies turn ideas into products that give way to new opportunities”