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“2013 is done. We now need to think about 2014”, summed up the Catalan Finance Minister, Andreu Mas-Colell, after finding out about the 1.58% deficit target imposed yesterday by the Spanish Executive. Mas-Colell considers this target to be “intolerable” since it “asphyxiates” Catalonia. The Catalan Executive was waiting to find out this figure to approve its definitive budget for the current year, but considering the low deficit target it is now considering extending the 2012 budget for the whole of 2013 – as it has been doing so up until now. The Catalan Government will make the final decision on the issue next Tuesday. Furthermore, Mas-Colell warned that a €1.7 billion budget adjustment will be needed in 2014 that will be required to increase one-off revenue since the Catalan Government “cannot spend less than in 2013”.

The Catalan Finance Minister, Andreu Mas-Colell, accuses the Spanish Government of “asphyxiating” the Autonomous Communities. The 1.58% deficit target imposed to the Catalan Government represents €2.6 billion of further budget adjustment compared to last year’s budget, which ended with a 1.96% deficit. Mas-Colell denounced that the Spanish Executive is “keeping for itself the greatest share of the deficit pie”, while it is only responsible for 50% of Spain’s public spending. The Spanish Government is setting itself a deficit target of 5.2% for 2013 and most of the flexibility allowed by the European Union, which authorised a 6.5% deficit for Spain’s total public sector. Meanwhile, the Autonomous Communities have a deficit target 4 times stricter, although they manage 36% of Spain’s total public spending as well as basic services such as healthcare and education.

The Constitutional Court rejected the allegations presented by the Catalan Parliament against the decision to temporarily suspend the Declaration of Sovereignty. This text was approved in January by two thirds of the Catalan Parliament and it stated that the people of Catalonia are sovereign to decide on their collective future. The Spanish Government took the Declaration to the Constitutional Court, which accepted the appeal and temporarily suspended the text until it reached a final decision – which might take years. The Catalan President stated he was counting on the Court’s decision to maintain the suspension and he emphasised that Catalonia’s self-determination process keeps moving forward. The majority of Catalan parties accused the Constitutional Court of being politicised while Spanish nationalist parties celebrated the decision.

On Thursday, the Parliament of Catalonia set up the parliamentary committee for the right to self-determination with the support of all parties except the Spanish nationalists People’s Party – which runs the Spanish Government – and the anti-Catalan nationalism Ciutadans. 80% of MPs support the creation of this commission, which will study legal ways to organise a self-determination vote in Catalonia. The Speaker of the Catalan Parliament, Núria de Gispert, will chair the committee due to its importance. De Gispert has guaranteed she will play the “neutral” role of “moderator”. On the same day, the youth of the parties supporting the creation of this committee signed a manifesto backing up Catalonia’s right to self-determination.

On Saturday evening, 90,000 people gathered in FC Barcelona Camp Nou stadium to attend a concert backing Catalonia’s right to self-determination. The event, organised by a civil society entity – Òmnium Cultural – and without public funding, called for a self-determination referendum in 2014. The two largest political parties in Catalonia, which share a parliamentary stability pact, stated that a specific date for a self-determination vote should be fixed after December 2013. In addition, they insisted that the Catalan President will send a letter to the Spanish Prime Minister in July asking for this vote to be organised. However, in Madrid, the reactions have been almost non-existent. The Spanish Justice Minister insisted that a referendum would be illegal since sovereignty is rooted into the Spanish people as a whole.

The participants to the so-called National Alliance for the Self-Determination Right have met for the first time, bringing together almost 50 entities, including political parties, business associations, trade unions, social organisations and cultural institutions. This transversal initiative gathering together a wide part of Catalan society aims to reach an internal consensus on how to proceed in order to allow Catalans to vote on their collective future. Attendees agreed to ask the former President of the Catalan Parliament, Joan Rigol, to draft a text expressing the “common denominators” of the participants. In addition, the President of the Catalan Government, Artur Mas, will send a letter to the Spanish Prime Minister, Mariano Rajoy, making a formal petition for the organisation of a self-determination vote in Catalonia.

On Friday, the Spanish Government approved a €37.7 billion reform of Spain’s public sector which fosters the elimination of Autonomous Community bodies considered to be “redundant”. Instead of directly obliging the Autonomous Communities to eliminate them – which might be very tricky legally speaking, the Spanish Executive will link their suppression to the deficit targets allowed to the regional governments and the funds provided. However, in the case of Catalonia, most of the bodies included in the reform are recognised by Catalonia’s main law, approved in 2006 by the Spanish Parliament and through a binding referendum. The Catalan Government and most of the political parties are accusing the Spanish Executive of trying to recentralise Spain. In addition, the Catalan President said that unfortunately Madrid “teaches lessons” but “does not do its homework” and eliminates Ministries without competences.

According to the current legislation, the Spanish Government has to invest 18.9% of its total transport infrastructure budget in Catalonia between 2007 and 2013 in order to compensate for an historical lack of such investments. However, according to the Spanish Transport Ministry’s budget execution reports and the projections made by the Chamber, the Spanish Government is far from honouring this legal obligation. Not only have investments in Catalonia not increased in relative terms, but they have been reduced to a “historical minimum”. While the planned budget for transport investments has been reduced by an average of 36% throughout Spain due to the economic crisis, in Catalonia it has dropped by 50%. Furthermore, 87% of the planned budget was executed throughout Spain, while in Catalonia Madrid only executed 68% of it.

In an interview with ACN, the Head of the EU Foreign Policy Unit of the Centre for European Policy Studies (CEPS), Steven Blockmans argued that “the European Union or the United Nations could play this role” if “both parties, including Madrid, voluntarily accept it”. Besides, Blockmans explained that Catalonia’s and Scotland’s self-determination processes and the possibility that they become independent states “is being debated” in Brussels circles, and it is even mentioned “often”. In addition, he also stated that if Madrid agrees, “a summit would be enough” to take “the political decision” to allow an independent Catalonia to become an EU Member State.

By the end of last month, 14,829 fewer people were registered at the Catalan Public Employment Service, which leaves the total number of registered jobseekers at 642,166 individuals. This represents a 2.26% drop compared to the figures from April, meaning that registered unemployment decreased in Catalonia for the last three consecutive months. May is a month when unemployment tends to drop thanks to temporary summer jobs, mostly related to the tourism industry. In the whole of Spain, unemployment decreased by 1.97% in May, with 98,265 fewer people registered as unemployed. This leaves the total number of people registered as being without a job and looking for one at 4,890,928 individuals in Spain. The Catalan Government welcomes “the positive horizon” shown by the May figures but it considered them to be “insufficient” as yet.

On Tuesday, the Catalan Government posted the so-called fiscal balances for 2010, showing the difference between the money paid by Catalans in taxes and fees to the Spanish Government and what comes back in form of funds, services and infrastructure. Using the monetary flow formula, Catalonia had a fiscal deficit of €16.54 billion, representing 8.5% of its GDP. Using the benefit formula, the fiscal deficit represents 5.8% of the Catalan GDP (€11.26 billion). The Catalan Finance Minister, Andreu Mas-Colell, stated that both formulas “are complementary” but he found the monetary flow one to be closer to the reality. The figures are similar to the results from previous years as well as to the study published in 2008 by the Spanish Finance Ministry with data from 2005. In the last 25 years, Catalonia has given away 8.1% of its GDP each year.

The CIS – the Spanish Government’s public opinion survey institute – has indicated that 55.1% of Catalans would like a Catalan state, either independent from Spain (33.7%) or within a federal Spain (21.4%). 29.4% would like to keep the Autonomous Community model and 12.1% would back recentralisation and Catalonia being a Spanish “region”. The survey was taken between September and October but the results were only released recently in early May, more than half a year later. In addition, 65.1% of the interviewees said they wanted more power for the Catalan Government.

On Wednesday it became known that the Catalan Banc Sabadell would acquire Banco Gallego from the Spanish Fund for Orderly Banking Restructuring (FROB). However, the details of the operation were still being discussed and no detailed information was disclosed. On Friday, it was stated that the FROB – owned by the Spanish Government and the Bank of Spain – will inject €245 million of public money into Banco Gallego. In exchange, Banc Sabadell will buy the financial entity for the symbolical price of 1 euro but will take care of all the potential future losses.

The leader of the Spanish Socialist Party (PSOE), Alfredo Pérez Rubalcaba, and the President of the Catalan Government, Artur Mas, secretly met on Sunday in Madrid, along with the Secretary General of the Catalan Socialist Party (PSC), Pere Navarro. Mas urged the PSOE to include the People’s Party (PP) in the debate on the reform of the Spanish Constitution and he warned that including the right to a self-determination vote is a “basic and essential condition” for a large majority of Catalans. The PSC, despite opposing Catalonia’s independence from Spain, backs its right to vote for self-determination, but Rubalcaba is completely opposed to it and considers it to be “impossible” to ever reach an agreement on such a vote. However, Rubalcaba insisted on the need to find a better relationship between Catalonia and Spain, in order to “remain together for centuries to come”.

The former leader of the European Union diplomacy and now an International Relations professor at the Barcelona-based ESADE business school, Javier Solana, stated that it is “difficult” to believe that such a measure could be implemented in Spain or Italy. Solana, who chairs the EsadeGeo Centre for Global Economy and Geopolitics, highlighted the fact that “it is an unprecedented decision to make all depositors pay” such a tax. According to Solana, this could create “insecurity” and it is “an unfair decision for honest money savers”, despite the measure targeting those who have manipulated Cyprus’ financial system.