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The third plan represents an additional budget cut of €1.5 billion, in order to meet the 1.5% deficit target for this year. The President of the Catalan Government, Artur Mas, said that the plan “guarantees essential services”. He also stated that if the Spanish Government had paid what it owed last year, the current reduction would be halved. The plan decreases budget allocations for public companies, reduces public employee salaries once again, decreases the amount allocated for subsidies, delays investments, privatises some public companies, sells public buildings, and implements the measures decided by the Spanish Government regarding health and education. The opposition criticised the plan for not being concrete and effective enough.

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.

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.

CiU stated that it will be “absurd” that they support the current budget proposal in the Spanish Parliament although they are open to negotiate and modify it. Furthermore, CiU “does not rule out the possibility of taking the Spanish Government to court” for ignoring the current legislation. The Socialists directly considered the budget proposal “to mistreat Catalonia”. The Green Socialists ask for a “common Catalan front” against the budget. The Catalan Independence parties (ERC and SI) say the budget plunders Catalonia. The anti-Catalan nationalists stated the budget wants to please Merkel. The only party supporting the budget was the PP, which runs the Spanish Government.

The General Strike on March 29th ended without significant changes in the Spanish Government’s Labour Reform, but with a clear acknowledgement that there is growing social anger. The strike was unevenly supported in Catalonia. Unions talked about sector strike participation ranging between 97% and 57% and the Catalan Government about strike participations ranging between 24% and 10%. Minimum services worked as planned, without any significant incidents. Demonstrations took place in the main Catalan cities, with the largest in Barcelona. Isolated violent incidents were the only negative parts of what was a relatively calm day.

The Catalan Government had already approved a 3% reduction of public salaries during the current year, which will now be increased to 5%. However, the President of the Catalan Government, Artur Mas, explained that the measure would be cancelled if the Spanish Government approved a similar reduction, in order not to harm public employees with two salary reductions. The People’s Party supports Mas but the Left-Wing opposition parties have criticised the measure and have said that there are other ways to reduce the deficit. Mas demanded that the Spanish Government include the funds it legally owes Catalonia in its budget for 2012 which would avoid further cutbacks.

As agreed, the PP abstained during the vote on the Catalan Government’s budget for 2012. The final text was approved with the 62 votes from CiU MPs, which controls the Catalan Government, the one vote from an independent MP, and the abstention of the PP. The rest of the parties have voted against it, in a tense plenary that has formalised the distance between the Government and the Left-Wing opposition parties. The details of some of the budget’s measures will have to be approved in one month, because three minority parties have asked for a “constitutionality” check.

The participation of the Catalan business community and local governments in the management of Barcelona’s Airport has been halted. This has been a long-term claim by many in Catalonia, as they believe that the centralised management of the airports has clearly benefited Madrid over Barcelona. The new Spanish Minister for Public Works and Transport announced the decision to cancel the tender process to privatise the management of Spain’s two main airports, Madrid Barajas and Barcelona El Prat. The reasons for the decision have been put down to a negative time for the markets and a desire for the value of the assets to increase in the future.

The People’s Party (PP) has taken back its parliamentary motions against the Catalan Government’s Budget proposal. The Government is run by the Centre-Right Catalan Nationalist Coalition ‘Convergència i Unió’ (CiU). The PP’s leader in Catalonia has warned CiU that “it does not represent a blank cheque” and that “sensible” negotiations need to take place in order for a final agreement to be reached. The PP has already backed the Catalan Government to approve its budget for 2011. The rest of the opposition parties regret that an agreement between CiU-PP has taken place.

The Catalan Socialist Party (PSC) is holding its 12th congress to renew its leadership and discuss its entire political project. After having lost the last elections, the Catalan Government and many town halls throughout Catalonia, the PSC feels detached from the majority of voters with many believing that it has lost its way regards it political project. Its attachment to social-democratic values, its connection with the Catalan municipalities, its defence of Catalan interests in Madrid, and the relationship with the Spanish Socialists are the main issues. Three mayors announced their candidacy to lead the party, which means that a synthesis looks more likely than a full renovation.

The outgoing Spanish Government has refused to pay Catalonia €759 million this year despite being legally obliged to do so and having stated publicly on several occasions it would pay the money. The Spokesperson for the Catalan Government announced Catalonia is risking to miss the deficit objective for 2011 without the funds. Facing this situation and the damage caused by it, the Catalan Government has decided to take the Spanish State to court and explain the issue to European institutions. Mariano Rajoy, Spain’s future Prime Minister, has said that he is not aware of the issue.

The Spanish Government refuses to transfer some of the funds that it is legally obliged to pay Catalonia in 2011. Without this money, the Catalan Government will have difficulties meeting the deficit objective for this year. The Catalan Minister for Finance, Andreu Mas-Colell, considers the stance of the Zapatero Government to be “rude” and ignorant to the needs of Catalonia. Furthermore it forces the finances of Catalonia to be put in the spotlight. Every single Catalan political group, including the Socialists and the People’s Party, have criticised the decision of the soon to be former Spanish Prime Minister, and have expressed their support for Mas-Colell.

The conservative People’s Party (PP) has won the Spanish General Election with an absolute majority. The PP obtained 186 MPs in the 350-seat Spanish Parliament, its best ever result. The Socialist Party (PSOE), who are the current Spanish Government, obtained the worst results in its history, winning just 110 MPs. In Catalonia, another historical change has taken place: the Centre-Right Catalan Nationalists (CiU) have won in the Spanish elections for the first time. The Socialists lose 44% of their MPs in Catalonia, and their main candidate Carme Chacón, is in a bad position to lead the PSOE after Zapatero. The PP continues as Catalonia’s third party, despite an improvement in its results.

Catalonia is the only autonomous community where the Socialist Party has clearly won, but has lost around 35% of its MPs, according to the exit poll released by TV3. The People’s Party (PP) will remain Catalonia’s third biggest force, behind the Centre-Right Catalan Nationalists (CiU), who will increase their share by some 40%. The exit polls released at 20.00 CET, when the polls closed, indicate an absolute majority for the PP and an historical defeat for the Socialists throughout Spain. The PP will get between 181 and 185 MPs, when the absolute majority is 176 seats. The election day has been calm, with a lower turnout than in the 2008 elections, particularly in Catalonia.

Catalonia and the Basque Country might be the only Autonomous Communities in Spain without a victory for the People’s Party (PP). The Socialists are likely to win once again in Catalonia, but they risk loosing 40% of their seats. If they slump even further then they risk being overtaken by the Centre-Right Catalan Nationalist Coalition (CiU) or even the PP. A quiet electoral campaign has come to an end, with three main unknown answers: if the Socialist party will get its worst results over the past few decades, if they will also lose in their stronghold of Catalonia, and how the international financial markets will react in the coming days.