united kingdom

Government relaunches committee on UK departure, shut down by Madrid

Parliamentarians from various countries come together to call for dialogue and a binding referendum on self-determination

The All-Party Parliamentary Group on Catalonia is re-constituted in the UK Parliament, with MPs and Lords from most parties, including Labour, Conservative and Lib Dem

Sergi Marcén took office on Thursday with the aim of strengthening bilateral relations between Catalonia and the governments of the United Kingdom and Ireland. After the ‘Brexit’ result, Catalonia wants to improve its support and service to Catalan citizens and companies in the UK and Ireland. The new Head of Delegation held his first meeting with the Minster of Foreign Affairs Raül Romeva in Barcelona to analyse the main priorities of action. Marcén replaces Josep Manuel Suàrez, who retired last spring.

The Public Diplomacy Council of Catalonia (DIPLOCAT) organised a debate in Edinburgh with outstanding European figures from the academic, legal and economic fields to discuss the challenges and opportunities of Catalonia's independence. "It is nonsense to imagine that part of a Member State could be directly expelled from the EU if it becomes independent" stated University of Edinburgh professor and former judge at the Court of Justice of the European Communities Sir David Edward. "Scotland had the chance to freely and legally pronounce on their political future and this is still the shared wish of the majority of Catalans" stated Secretary-General of Diplocat, Albert Royo. The director of the Centre on Constitutional Change, Michael Keating, and the Catalan Government’s delegateto the United Kingdom and Ireland, Josep Suàrez, also attended the event.

The Catalan Government was one of 14 regional executives to sign the 'Under 2 Memorandum of Understanding' in May 2015 as part of a pact to reduce CO₂ emissions by 80-95% by 2050 among the signing territories. This goal is an effort to mitigate the worst effects of climate change coming from greenhouse gas emissions. In recent years, the Catalan Government has been working toward improving energy efficiency and developing a greater supply of renewable energy through various initiatives and action plans. However, the biggest changes necessary for Catalonia to adopt the renewable, low-emissions energy model it desires cannot be implemented by the Catalan Government, but would have to come from the Spanish Government instead. Overall, the biggest challenge facing the adoption of renewable energy is being able to produce it at prices competitive with conventional sources of power.

Last April, Banc Sabadell filed a takeover offer on 100% of the shares of the UK lender TSB, partially owned by LLoyds. On Monday, the Catalan bank announced it had already exceeded the 75% minimum bid of the takeover offer, reaching 81.23% of TSB shares. However, this percentage is still likely to increase in the upcoming days, since there are 14 remaining days till the end of the takeover's acceptance period. In order to fund the transaction, the Catalan corporation will carry out a €1.61 billion capital increase (€1,607 million). Current shareholders have a preference call in this capital increase. Banc Sabadell, is one of the few banks to emerge stronger from a financial crisis that has redrawn Spain’s banking sector. Unlike many of its Spanish rivals, the bank is in good shape reporting a 50% increase in annual profits at the end of 2014 to €371.7 million. Since 2007, it has doubled in size and is now Spain’s 5^th largest bank. It achieved this mainly through an energetic programme of acquisitions in Spain and abroad. 

Spain is home to around 300,000 registered British nationals, 20,000 of whom reside in Catalonia and retain the right to vote in the forthcoming general elections in the UK on the 7^th of May, according to date from the Spanish Statistics Institute given in 2014. The election this year is especially important as polls suggest that no combination of parties will win a stable majority which could be the end of the road for a strong government. Moreover, the election is more important than usual for British nationals living in Spain as in the rest of Europe as Cameron has promised that a Conservative victory will renegotiate Britain’s relations with the EU and put the result to an in/out referendum on membership by the end of 2017. A British exit from Europe could potentially lead to British nationals abroad facing several difficulties in regards to freedom of movement across Europe. On the other hand, May 7th could also mark the point of no return for the troubled union between England and Scotland, due to a surge in support for the secessionist Scottish National Party (SNP).

Last week, TSB announced Banc Sabadell's interest in purchasing all of the shares of the British bank, which is partially owned by Lloyd's. The board of the 6^th largest bank in the United Kingdom then said they would welcome the Catalan bank's takeover bid, which they set at £3.40 per share (equivalent to €4.80). This meant that Banc Sabadell would buy TSB for £1.7 billion, or €2.4 billion. At that time, the Catalan bank denied any definitive agreement had been reached and simply confirmed that there were some talks in progress. A week later, Banc Sabadell has finally announced and approved the takeover bid, on the same terms released last week. In order to fund the transaction, the Catalan corporation will carry out a €1.6 billion increase in capital. This purchase will significantly strengthen Banc Sabadell's internationalisation, dramatically increasing its presence in the UK and in London's financial circles.

TSB, which is the seventh-largest bank in the United Kingdom, confirmed on Wednesday that they have received a preliminary takeover bid of £1.7 billion (equivalent to €2.35 billion) filed by Banc Sabadell. The Catalan bank would have offered £3.40 per share (€4.80) and would be ready to buy the entire British financial entity, 50% of which is still owned by Lloyds. Sources from Sabadell have confirmed takeover talks, but they stressed that they are still preliminary in nature. After the news was released, shares of TSB increased by 26.4% while those of Banc Sabadell dropped by 7.5%, causing the Spanish Stock Exchange Authority (CNMV) to temporarily suspend trading in the Catalan bank. When Banc Sabadell returned on the stock market, its shares continued to decrease, dropping by 10.5%, but they partially recovered and ended the day with a 6.6% loss.

The Tate Modern launched on Wednesday 'Albert Serra: Divine Visionaries and Holy Fools', an event series on the Catalan maverick filmmaker. The show will be on until 20 March and will include an exclusive preview of his latest project 'Singularity', which he has been shooting the last few months. This project has been commissioned for the Catalan pavilion at the 56^th International Art Exhibition of the Biennale di Venezia. The Tate Modern-hosted event represents the first major showcase in the UK of Serra's work, a powerful and unique voice in contemporary cinema, as stated in the Tate Modern's presentation at the event. The show begins with the screening of his recent film 'Story of My Death' (2013) but the most awaited event will take place on Friday, when the Catalan director will premiere 'Singularity'.

Cava is a Catalan sparkling wine produced using the ‘Méthode Champenoise’. According to statistics from the Cava Regulatory Board, some 242.29 million bottles of Cava were sold in 2014, which represents a 0.38% increase on 2013 figures. Sales on the domestic market increased for the first time after two years of decline, reaching 87.58 million bottles, a 7.54% increase over 2013, with 6.14 million more bottles sold. Sales in bars and restaurants are one of the main reasons for the domestic increase since these grew by 9.3% over 2013. These results compensated for the drop in 2014 sales to the EU market, which accounted for 111.62 million bottles, 5.3% less than in 2013 and a decline in absolute terms of 6.22 million bottles. This was mainly due to a contraction in demand from the German market.

Adam Price, the former Member of Westminster Parliament and Harvard University expert, believes it “would be very difficult” to argue that an independent Catalan state would not be prosperous. In fact, he thinks Catalonia “would have done better” without being part of Spain. Price is an acclaimed economist and political expert and the author of a report written for Harvard University on the economic potential of smaller countries. In the report Price examines how smaller European economies have a higher chance of gaining economic success than larger ones. Studying small European nations, Price believes, without a doubt, that an independent Catalonia would have huge potential in the long run. However, he also stresses that “transition cost” are another debate.

The multinational company Roberlo, based in the Girona Province, has acquired the British enterprise Chemfix. Roberlo, which manufactures chemicals for the construction and automobile industries, expects to increase its profits by 30% this year with this transaction, reaching 65 million euros. 85% of the Catalan company’s turnover moves into foreign markets, so this purchase contributes to its internationalisation. The aim of the Girona-based company is to be one of the top three European producers which use chemical docking, an industrial technology.The business has two factories in Girona, one in Brazil, one in Russia and now, one in the UK. The Catalan group has ten subsidiaries and employs 400 people, 200 of which are located abroad.

Despite a decrease in Russian visitors, Catalonia increased the number of international tourists it hosted during 2014. Some 16.7 million foreigners travelled to Catalonia last year, which sets a new historic record. In addition, it represents a 7.2% increase on 2013 figures. International visitors spent more than €15 billion during their stay, 6.1% more than in 2013. Therefore, foreign tourism accounted for some 7.5% of Catalonia’s entire GDP during 2014. Each tourist spent an average of €900 during their stay. The Catalan Minister for Business and Employment, Felip Puig, presented the figures on Wednesday and emphasised that the objective for future years is not so much to increase the number of tourists but rather to increase the revenue which they bring in.