spain

The International Monetary Fund wants the Spanish Government to “strengthen” the labour market reform, not give up on spending cuts and restructure the financial system. The same day, the Bank of Spain's Governor, Miguel Angel Fernández Ordóñez asked the Spanish Minister for Economy to be “stricter” on the Autonomous Community government’s deficit reduction. The Catalan Minister for Finance said on several occasions that Catalonia would meet the deficit objective for 2011 if the Spanish Government showed some institutional loyalty and paid the money it legally owes to Catalonia.

The Catalan Parliament rejected a law proposal on Catalonia’s independence three days after the popular consultation process on the issue ended with a clear “yes”. This civil society voting was not an official referendum and it was not organised by public powers. It took place over the course of 18 months, and Barcelona closed the process on Sunday. 21% of the electoral census turned out (885.000 citizens) and 90% of the voters backed Catalonia’s independence from Spain. Members of the Catalan Government cast their vote, including the President.

This English writer has been living in Catalonia for the last 26 years. This week he presented his new book ‘Barcelona, Catalonia: A View from the Inside’. Tree explains the difficulties he encounters explaining Catalonia to foreigners.

On the same day that Catalan hospitals presented their plans to reduce their budget by 10% and cut several services, the Catalan Government’s Spokesperson sent a strong message to Madrid saying that "enough was enough." The Spanish Government answered the calls by the Catalan Executive by saying that if it does not meet the 1.3% deficit objective for 2011, it will run out of cash. Madrid is asking for greater budget cuts. Almost all Catalan political parties, including the People’s Party, back up the Catalan Government, the main exception being the Socialist Party, which supports Prime Minister Jose Luis Rodriguez Zapatero.

The Spanish Government demands an additional budget reduction of 3.2 billion euros to Catalonia, while the Catalan Government claims 3.3 billion owed by the Spanish State. Catalan parties have accused Prime Minister Zapatero of reducing his government’s deficit by increasing that of the autonomous communities. The Spanish Government wants to force Autonomous Communities to pay for the deficit by limiting it through specific laws.

The Bank of Spain today released the debt of the Spanish Autonomous Communities. Catalan public debt represents 16.2% of Catalonia’s GDP and increased 36.7% in one year. The new Catalan Government stressed its austerity and stability plan, which will cut public expenditure by 10%.

The Director of ESADE’s Master in Finance, Jordi Fabregat, recommends that Catalan savings banks speed up its transformation into private banks in order.

Experts in economics and regional fiscal redistribution concluded at a conference in London that the Spanish Autonomous Communities’ expenditure like Catalonia’s is not to be blamed for the downgrading of Spanish debt. They stated that the Catalan Government can not only be “an expenditure agency” and that it needs total control over its revenues and budget.

According to the new German Chamber of Commerce Managing Director in Spain, the Central European country could promise young Catalans not only training and competitive salaries but also job stability. He also explains which are the obstacles in his view that stop German investments in Spain and Catalonia.

Companies and agencies from the tourism industry have joint together to highlight the potential of the Asian tourist market and stress the obstacles for its growth. Currently, Barcelona has only two direct flights with Asia per week, a figure that is expected to largely increase. As an example of this potential, China exported almost 57 million of tourists abroad per year, but only 90,000 visit Barcelona.

A Spanish police trade union has complained to the government for not teaching Catalan to police agents. While money is being invested in simultaneous translation in the Senate, there is no way to help police stationed in Catalonia integrate socially, claims the police union CEP.

Since the Spanish Deputy Minister for Budget threatened to intervene in Catalan budgetary affairs and in response to the recentralisation debate, the Catalan President, Artur Mas, sent a public warning to the Spanish Government and politicians in Madrid. Mas emphasised that “a point of no return” might be reached if the Spanish State puts obstacles on the Catalan Government’s financing. He also threatened that, if Spain takes action, Catalonia will react.

In the last few days, a series of declarations by Spanish leaders put some dark clouds over the future of the Autonomous Communities model, a cornerstone of the current Spanish Constitution. The People’s Party (PP) shot first, claiming for more centralism, and the Spanish Socialist Party did not want to be left behind. Today, Prime Minister Zapatero showed up by surprise at the Senate to defend the current model.

Ortega will be in charge of public administration staff and structures, as well as the relations between the Catalan Government and the Spanish State’s powers. She will be the first woman to hold the office of Vice President. She defends traditional family values and promotes women’s talent.

Miquel Valls, president of the Barcelona Chamber of Commerce, says, “Catalonia is the first economic region in Spain, it makes up 19% of the GDP and has solidarity with the rest of the regions”.