The President of the Catalan Parliament Núria de Gispert presented the Chamber’s austerity plan today. Staff will be reduced by 10% within the next 4 years, official duty cars by 50% and the scheduled enlargement plan will be put on stand by.
The President of the Catalan Government Artur Mas said that his Cabinet would reduce the Government’s budget for 2011 by 10% in order to cut public deficit. Speaking at the Catalan Parliament today, Mas accused the Spanish Government of not having paid 1.000 million euros last year as agreed. “It is very easy to cut their own deficit by creating deficit to other administrations”, he emphasised.
In an interview with the Financial Times this weekend, the Prime Minister Zapatero threatened to intervene in some Autonomous Communities’ budgets. Today the Spanish Secretary for Economic Affairs reiterated this threat. However the Catalan Government has stressed that Catalonia has in fact no problem with its public deficit. Catalan political parties reminded the Spanish State that the Autonomous Communities only have one sixth of the entire public debt throughout Spain.
The new Catalan Government announced today that the budget for 2011 (currently the 2010 has been extended) will be ready within the next 4 months and approved before the summer break. The Government’s Spokesperson, Francesc Homs, said that for the first time, the budget will be “clearly smaller” than the previous year’s. In addition, the new Government asked for an external audit on the Catalan public administration’s finances.
Artur Mas, the newly elected Catalan president has a new plan up his sleeve. He will cut 23% of the high-ranking positions and reduce the number of political advisers. Public organisations and quangos will also be affected by this austerity measure. The government is forecasting a deficit of 7.800 million euros.
The Governor of the Bank of Spain, Miguel Angel Fernández Ordoñez, warned about the need to limit the capacity of local and autonomous communities’ administrations to increase their public debt. He wants legal limits. He also alerted that a plan B is needed if the economy worsens.
The Bank of Spain?s Governor demands that autonomous communities and local administrations cut public expenditure even more. He has added that most of the means announced by these public administrations are too far from the level of reductions the Spanish
Government and unions clash over success of strike action. Official figures suggest 11% of participation while unions raise the figure up to 75%. The salary cuts within the public sector adopted by the Spanish Government have infuriated the unions.