salary reductions

On Tuesday, the Catalan President announced a series of measures that will be included in the 2012 budget in order to meet the 1.3% deficit objective. The Catalan Finance Minister said that the fall in public spending will be smaller than that of this year. Ministers from the Catalan Government have been providing more details about the measures. The so-called “moderating ticket” to reduce the Catalan public healthcare system’s pharmaceutical bill has been questioned by the Spanish Government, as Barcelona “does not have the powers to do so”, despite managing the public healthcare system in Catalonia.

Artur Mas, the President of the Catalan Government, has announced the main austerity measures to reduce Catalonia’s public deficit and meet the 1.3% objective for 2012. Mas stressed that these measures are to be taken in order to reduce the deficit and not harm social policies. The Catalan People’s Party was satisfied with the plans, while the Left-Wing parties warned that they would harm the middle classes. The Catalan President also sent a warning to the next Spanish Prime Minister: a new “fiscal agreement” for Catalonia might be “one of the few opportunities left” to rebuild relations with the rest of Spain.

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.

Madrid-based professionals are paid 2.24% more than in Catalonia and 20% more than in València. Catalonia’s salaries decreased, after having reached salary parity with Madrid in practical terms. The crisis has stopped salary convergence throughout Spain.

This measure is part of a plan to cut the public deficit at all levels of government. It has passed with the only positive votes from the parties in the Government´s Left-Wing coalition.