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“In exceptional times, exceptional decisions are needed”, stated the Catalan President, Artur Mas. After the 1.5 million strong independence demonstration on September 11th, the Spanish PM’s refusal to negotiate a fiscal agreement for Catalonia, and days of speculation, Mas called for elections. He announced the decision in the Catalan Parliament’s main annual debate, in which he stated that budget cuts will continue, although “austerity cannot be the only value”. He also accused the Spanish Government of being “disloyal” and imposing stricter deficit targets on the Autonomous Communities. Catalan nationalist parties are celebrating the call for elections for giving the people a say, while the rest accuse Mas of putting his party’s interest first by deviating attention away from the dramatic economic situation.

In the largest demonstration Barcelona has ever seen, 1.5 million citizens according to the Catalan Police marched in Catalonia’s capital after the banner “Catalonia, Europe’s new state”. The Spanish Government reported a reduced number of 600,000 participants while organisers talked of 2 million participants. The Catalan President did not attend it because of his institutional position, but gave his support at a personal level. Most of the Catalan Government was present. Members from most of the Catalan political parties were also present, including the Socialists (PSC) but at a personal level. The only absentees were representatives from the People’s Party (PP) and anti-Catalan nationalism ‘Ciutadans’ (C’s). Many families gathered for the demonstration which ended with the petition to start the secession process.

September 11th is the National Day of Catalonia. It remembers the day Barcelona was defeated by the Bourbon army in 1714 and Catalonia lost its self-governmental institutions and a new political system was imposed. The institutional festivities include the traditional offer of flowers to Rafael Casanova’s statue, who was leading the Catalan army during the 14-month Siege of Barcelona (1713-1714). The main institutional event takes place in the Ciutadella Park of the Catalan capital. At 18.00, the main demonstration organised by civil society organisations supporting Catalonia’s independence will kick off.

The first Congress of the different Pirate parties of Europe aims to create a Pirate Party at a European level. The Congress made clear the movement’s recipe to tackle the crisis: freedom of information, more transparency, and greater public participation. Forty representatives from throughout Europe met in Catalonia to discuss the future of the political group.

Until now, the EU was refusing to openly discuss the issue and was stating it was strictly an internal matter to be solved within Spain. The President of the European Commission, José Durao Barroso, admitted that “in the hypothetical case of a secession” of Catalonia “the solution should be found and negotiated within the international legal framework”. In this new scenario, Catalonia would not automatically be a member of the EU but this would be part of the negotiations. Barroso was ambiguous about the future of the European citizenship Catalan citizens currently have and said that “EU citizenship is additional”.

The Catalan Social Affairs Minister, Josep Lluís Cleries, stated before the Catalan Parliament that €70 million had not been paid on time to health and social care organisations this August. He said he was sorry for the situation but underlined that the €50 million destined for private citizens had been paid. The Catalan Finance Minister, Andreu Mas-Colell, emphasised that, if the Spanish Government does not activate the Liquidity Fund for the Autonomous Communities and similar measures, he cannot guarantee the situation will not be repeated in the future. However, he said to be confident the Spanish Government will put these mechanisms in place soon. The Left-Wing opposition parties had requested the urgent hearings.

Catalan Parliament approved on Wednesday the proposal for a new fiscal pact for Catalonia by an overall majority. The proposal defends the creation of an independent tax agency with powers to raise and manage all taxes in Catalonia. According to the Catalan President, Artur Mas, it involves starting a “difficult” negotiation with the government of Spain but it was either “now or never”. If achieved, this new fiscal arrangement would be similar to the one enjoyed by the Basque Country, that collects its own taxes and has been able to keep its debt under control. Therefore, it could help Catalonia getting out of the crisis. Currently, out of the all the territories, Catalonia is ranked third for the amount it pays in taxes, but is ranked tenth for the amount it receives in return. The new arrangement would see Catalonia leaving the common system established by the Organic Law on the Financing of the Autonomous Communities (LOFCA) and establishing bilateral fiscal relationships with Spain.

The ruling Centre-Right Catalan Nationalist Coalition, Convergència i Unió (CiU) and the People’s Party (PP) have agreed to evaluate the drug prescription fee in 2013. The implementation in 2013 of the 1 euro fee will be on the condition of meeting the deficit targets and the effects of other financial measures regarding medicines. The PP has abstained in the Catalan Parliament’s vote and the plan finally has the green light to be implemented.

Using its absolute majority, the People’s Party (PP) has approved the Spanish Government’s budget for the current year refusing 3,100 amendments from the opposition. Only 3 minor amendments from the opposition parties have been accepted. The budget does not respect the current legislation, which obliges to guarantee a minimum investment percentage to be made in Catalonia in order to compensate for an historical lack of money being put into the Autonomous Community. According to Catalan law, approved by the Spanish Parliament, Catalonia should receive at least 18.66% of all the territorial investment made throughout Spain; however it only receives 11.04%.

The Catalan Parliament has approved Catalonia’s Law of Budget Stability, which is more restrictive than its Spanish equivalent. The Catalan law reduces the adaptation time set in Spanish law by 2 years. Furthermore, it sets a 0% deficit for 2020. The law has been approved with the votes of the Centre-Right Catalan Nationalist Coalition (CiU), which runs the Catalan Government, and the Conservative People’s Party (PP), which runs the Spanish Executive. Left-Wing parties have voted against the measure; according to them it follows the “0% deficit dogma” and forgets about “necessary” social spending.

On Europe’s Day, CNA reflects the conference the President of the European Parliament gave in Barcelona last week. The German politician emphasised the importance of the Mediterranean Basin and its great economic potential; the historical moment we are living due to the Arab Revolution; the lack of leadership in Europe and importance of working for a strong European Union in order stay at the forefront of the political scene.

The President of the European Parliament is visiting Barcelona; coinciding with the European Central Bank Governing Council meeting that is taking place in the Catalan capital. Schulz asked Member States to be less focused on “budget cuts” and start “working together”, otherwise there is a great risk that the EU might end up “failing”. The German politician praised Catalan culture, and reaffirmed his will to push for Catalan being an official language in the Parliament he chairs. Schulz met with the Catalan President, Artur Mas, as well as with Catalan author Jaume Cabré.

The Spanish Finance Minister, Cristóbal Montoro, blamed the Autonomies and town halls for Spain’s public deficit. Montoro stated that the Spanish Government is meeting the deficit objective for 2012 with the results from the first quarter. However, Catalan MPs reminded Montoro that he is refusing to pay the money it owes Catalan institutions and that with this strategy he transfers the blame for the deficit by not transferring the funds. The Catalan Government directly accused the Spanish Executive for their “massive lie”. According to internal studies from the Catalan Government, the Spanish Executive made incorrect calculations by saying the Autonomies could save €10 billion in healthcare and education with last week’s measures.

This advisory body dependent on the Catalan Government affirms that two aspects of the Labour Reform Law, recently approved by the Spanish Government, go against the Spanish Constitution. Furthermore, the report also highlights three elements that invade the Catalan Government’s jurisdiction. The four Left-Wing Catalan parties that requested the assessment one month ago are pushing for the reform to be brought to the Constitutional Court. CiU, who runs the Catalan Government, hopes to modify these aspects through parliamentary negotiations.

The European Liberals in the European Parliament have organised an international summit in Barcelona to discuss the Arab Spring within the framework of the Union for the Mediterranean, which has its headquarters in the Catalan capital. At the meeting, the President of the Catalan Government, Artur Mas, who is also the leader of the Catalan Liberal Party (CDC), asked the EU “not to turn its back on emerging democracies in the southern Mediterranean”. Furthermore, Mas emphasised the need to create jobs in the region. The European Liberals also urged the international community to take immediate action in Syria.