Category Archives: Capital

Spain’s strict spending controls give the lie to Catalan autonomy

Capital, Catalonia, Politics, Spain, , ,

One of the most widely repeated myths in the debate about Catalan independence is that ‘Catalonia already enjoys more devolved powers than almost any other region in the world’. We’re frequently told that US states, German landers and other autonomous regions have nowhere near the autonomous powers that Catalonia enjoys. This is less accurate than it immediately seems.

While it’s true that Catalonia and the other autonomous communities in Spain have broad powers and areas of responsibility under the constitution and the statutes of autonomy, they really cannot be compared with, for example, German landers or American states. Vitally, Catalonia has strictly-limited powers over what taxes it collects and when it can levy new taxes. Most attempts to create new taxes have been challenged by the Spanish government, or have been subsequently ‘trumped’ by the government establishing an identical tax at state level, thus making the Catalan tax obsolete.

But it’s the Spanish government’s latest announcement threatening suspension of payments under the Autonomous Liquidity Fund (FLA) which really gives the lie to this claim. The fund itself was already problematic, because rather than helping Spain’s autonomous communities operate in financial markets, it establishes the Spanish state as the source of liquidity loans, which must be repaid with interest. The FLA system establishes almost total state control over autonomous finances and spending, even governing payment priorities, expenditure controls and the final decision over which bills are paid and when. If that sounds like ‘autonomy’ to you, we have a very different understanding of the word.

Now, the Spanish government is taking things a step further by forcing the Generalitat to provide detailed accounting on a weekly basis to ensure that ‘not 1€ is spent on an illegal referendum’. The Spanish government has clearly decided that to use the normal tactic of taking the Generalitat to court post factum in the event of any spending with which it disagrees, won’t work with a referendum that will likely lead to a unilateral declaration of independence. So the decision has been taken to directly intervene (even more than previously), and establish even stricter controls on Generalitat spending with the threat of suspending FLA payments. If that sounds like ‘autonomy’ to you, we have a very different understanding of the word.

It looks like the Spanish government feels that it has played its best hand with this move: not using force or even the courts to defeat the Catalan ‘challenge’, but something that hurts even more: cash. But once again, the bigger picture is being ignored. By removing even the pretence of fiscal autonomy from the Catalan government, the Spanish state is admitting that the whole thing is a façade whose supposed constitutional protections are meaningless in the face of a state hellbent on recentralization. Autonomy for Catalonia is not protected: it’s “by the grace of Madrid, and don’t you forget it”. To win the point, Spain has to lose the moral argument.

El País – from liberal leader to voice of the establishment

'Terror', Capital, Catalonia, Politics, Spain, , , , , , , , , ,

If El País is “co-author of the transición”, what does the state of this newspaper tell us about the state of Spanish democracy? That is has retreated into an increasingly authoritarian, illiberal and limiting structure no longer aimed at liberating a nation but at preserving the status quo, above all else.

When I first moved to Barcelona nearly 15 years ago, El País was still read in progressive Catalan households. Even though it had practically always been close to the sort of ‘Socialismo’ represented by Felipe Gonzalez, El País seemed to stand up to the conservative, even post-Francoist caspa of the Aznar government. Throughout that era, as its readership shared in the boom of the 2000’s, El País seemed to represent a progressive, hopeful agenda for Spain. After 2004’s 11M bombings, El País offered clear analysis and avoided the unforgivable conspiracy theories of El Mundo and other parts of Spain’s conservative press. Zapatero, the most progressive Spanish prime minister to date, helped encapsulate a sense that a certain ‘can do’ Spanish liberalism was dominating, and despite the launch of Público, El País was still there as the leading liberal voice.

The dawning of the crisis meant bad times for Spain, and bad times for El País and its proprietor Grupo Prisa. Despite layoffs, the newspaper struggled with huge debts, many with the banks it was supposed to be investigating. The ones that helped trigger the crisis itself. Now the government proposed critical labor reforms and I, in retrospect late to the game, saw that El País wasn’t in the business of opposing central economic policy. As unions planned first one and then a second general strike, El País published hatchet jobs on their leaders and did its best to undermine turnout. When the Socialist government used Franco-era measures to forcibly militarize all air traffic controllers in the country, El País published lie after lie about the industrial dispute they were involved in. And as Catalonia, without its promised Estatut – which the newspaper had backed, started to look towards self-determination, El País retreated into the sort of dogmatic legalism which still informs its position today.

Grupo Prisa’s CEO, Juan Luis Cebrián, was interviewed the other day in El Mundo by Cayetana Álvarez de Toledo y Peralta-Ramos, the 13th marquise of Casa Fuerte and hotshot at José Maria Aznar’s right-wing Spanish nationalist FAES think tank (she who allegedly broke the law the other day at the trial of Mas et al, but who will doubtless face no penalty). Asked about the Catalan question, Cebrián laid out his position frankly and clearly: “If the king’s brother in law can go to jail, why can’t Artur Mas?” [a curious comparison, given that Iñaki Urdangarin, has been jailed for corruption and embezzlement, while Artur Mas is on trial for permitting a non-binding popular consultation to be held] and “Someone mentions sending in the Guardia Civil. People say ‘no, not the Guardia Civil’, but I say: yes, why not? That’s what the Guardia Civil is for” and “[The government should act so that] the debate isn’t about when they get their independence, but about when they get their autonomy back”.

The interview is fascinating because it helps to explain the decline of El País as a leading liberal voice, the decline of the PSOE as the party of reform, and the end of the Transition Pact, the end of nearly 40 years during which the Catalan bourgeoisie represented by Convergència i Unió could be relied on to maintain the governability of Spain as a whole. The new pact which has replaced the old one is opposed to constitutional reform, which is why it maneuvered to prevent a PSOE-Podemos coalition in the last two elections, and preferred to gift Rajoy reelection than see Pedro Sánchez in charge.

The new pact can be defined by 4 particular policy lines on which its members agree: opposition to reform other than further liberalization of the labor market; the reduction of the concept of democracy to “the rule of law” and not much more; a strict and un-nuanced reading of the constitution; the rejection of the right to self-determination.

Regarding this last point, last month Alfred de Zayas, UN Special Rapporteur on the promotion of a democratic and equitable international order, wrote to the Spanish government to raise concerns about its treatment of the Catalan question – the so-called ‘Operación Cataluña’, which involves criminal trials for elected officials, along with other, even murkier tactics. He reminded Spain about the right to self-determination. And he noted that a referendum is a very good way of resolving questions like that currently concerning Catalonia.

El País, once the leading liberal voice in the Spanish language, chose not to report this letter.

Voting Remain to build a better European Union

Capital, Politics, UK, , , , , ,

The EU is a beast that’s difficult to love at the best of times. And these certainly are not its best times. The weakness of its institutions over the last decade has meant that it has found it difficult to deal with a series of crises. But it has not been the abject failure that some would have you think. While I disagree with much of the fiscal policy pushed by the Troika, it must be remembered that the EU managed to prevent a Euro collapse that really was on the cards for a year or two. It’s easy to forget now that when the EU faces a serious challenge, it has the pragmatism and determination needed to find a solution. This spirit is what has saved the EU in the past and will help it move forward from its current stasis.

For months, I’ve been discussing disconnection, alone and with friends. I’ve been in Catalonia for fourteen years now, and my infrequent trips to England have left me worried about what’s happening there. Increasingly, I’ve felt disconnected from England. I don’t understand why there are Union Jacks everywhere, or why cool people I get along with suddenly shriek at me about the country being “full”. I don’t understand how people close to me can describe the EU as “horrible”, while they simultaneously contemplate handing power to people like Boris Johnson, Michael Gove or Nigel Farage. Victory for Brexit will be a victory for nasty right-wing populism – the repetition of old lies and the fabrication of new ones. Look how UKIP supporters pushed an ever louder, ever nastier anti-migrant message and then went into overdrive trying to claim that Jo Cox’s assassination wasn’t political. That party thrives on people’s fears, and has managed to poison debate in England in a way I never thought possible. And Brexit will hand Farage a huge amount of political capital.

Not wanting to empower Britain’s populist right wing isn’t enough of an argument for the EU, though. The other half of this narrative must be logic and fact – the LSE’s Nicholas Barr is as good a source as any for a sensible, evidence-based approach to remaining in the EU. How telling it is that some Brexiters are even calling on their countrymen to ‘Ignore the numbers!‘, as though that were somehow a noble way to approach this debate. It isn’t: it’s the very definition of small-minded ignorance, a quality which exemplifies the Brexit campaign. The numbers are, of course, vitally important. Which is no doubt why we’re encouraged to ignore them. “You can prove anything with facts!“, as Stewart Lee reminds us. Whether it’s trade, security, democracy or the economy, all the evidence and research points to remaining in the EU as the sensible choice.

If Brexit ends up winning on Thursday, the sky will not fall. But things will change. Britain’s democracy will have been dealt a major blow by arguably the most dishonest and hate-filled political campaign in our history – certainly since the Blackshirts. Voters will have sided with ignorance and demagoguery. Britain will, for perhaps the first time in its history, take a step backwards and explicitly reject progress and modernity.

This referendum will likely be my last chance to vote in the UK. It’s also by far the most important vote I’ve ever cast. If you have a vote, please use it to vote to keep Britain in the European Union and reject UKIP’s vile, populist propaganda. Vote for the hope that Europe represents for so many millions of people, and for the aim that together we can build a better Europe and a better Union. Vote Remain.

Pujol Ferrusola claims a top police chief offered the family immunity for stopping independence “madness”

Capital, Catalonia, Politics, PP, Spain, , , ,

A generous offer, if true. It fits with the “do this to save Spain” text that we heard about a couple of years back.

Apparently he wanted some dirt on ERC too and said that he “knew” that Pujol had contacts in “Eastern countries” who were going to help create a Catalan army.

None of which makes the Pujol story any less murky, of course. But if true, it helps to confirm suspicions that the Pujol investigation is less about corruption and more about politics and, ahem, territorial integrity.

Personally, I’d be happy to see Pujol behind bars, if convicted, and Mas as well. But those who carp the “Junts pel 3%” line ought to be careful. The idea that kickbacks are some sort of Catalan phenomenon is laughable. I asked a (non-Catalan) friend in the know about this the other day and he told me that not only is this a Spain-wide practice, it happens pretty much everywhere.

And while the independence movement has been accused of existing solely to mask the Pujol case (absurd, given that the large demos started years before anything about the Pujols was in the papers), you might well ask why we hear so much about one group of oligarchs in a country totally overrun by corrupt shits. Would it not make sense, you may wonder, for the PP to pressure an already politicised police and judicial system to investigate the Pujols, shortly after Rajoy himself was named in court documents as personally receiving envelopes stuffed with cash? Because the PP wins both ways: if the tactic works, you stop the Catalans and overshadow the PP’s corruption cases.

I mean who even remembers that the PP’s offices were raided in December 2013?

From the left towards Catalan independence

Capital, Catalonia, Politics, Spain, , , , , , , , ,

Fellow traveler Kate Shea Baird sums it all up quite well. I feel it’s important for those of us on the left who support Catalan independence to remember that we want independence in order to deliver a better country. Not just any country. An independent Catalonia, sí o sí, is not the aim and never should be. I don’t consider Catalans to be living under a repressive regime (unless you mean the Mossos) and so I don’t buy the liberation trope. And while I wouldn’t like to see Artur Mas behind bars for organizing the consulta, I’d crack the cava open if he and the rest of his party were sent down for corruption.

The pro-independence left (mainly the CUP and elements of Iniciativa and a handful of people at ERC) must maintain its focus through all the twists and turns in this process. We must, above all, fight for our values as the keystone of our support for independence: we want a better country. We want a country that helps the poorest, defends labor, looks after its citizens’ health, educates its young people, invests in the arts and culture, promotes sustainable living and tourism, and rejects CiU’s corruption and the neo-liberal model. And because we’re on the left, we must want all these things for Spain as well.

That’s the Catalan republic that I defend.

Mas making love to France

Capital, Catalonia, Politics, Spain, , , , , , , , , ,

Artur Mas has been on an official visit to France. He celebrated that Spain has permitted Catalonia its own sub-representation at UNESCO in Paris. He also took the opportunity to suggest that the concession for Rodalies commuter trains in Barcelona might be sold to SNCF when Renfe’s license expires in 2015.

Similar noises were made a while back when it was suggested that France be the defender of Catalan independence and territory, rather than Spain or Catalonia itself. A proposed meeting with the French minister of defence was cancelled – allegedly after pressure from Spain.

So it’s privatisation of public infrastructure, but done in a clever way that in theory could help get the French on-side when it comes to independence (and thus make us forget that we’re talking about basic state services). Going further down that road could be risky: an independent state with no infrastructure to call its own isn’t much of a state.

[I’d like to add that I raised the France question a while back on this blog, and had a lot of comments from Catalans who thought France’s position was utterly irrelevant. Rather short-sighted of them, in my opinion. I assume they’ll be writing to Vilaweb to complain, now that the pro-independence website has published an editorial entitled ‘France is key for Catalonia’s diplomatic recognition‘.]

Can Rajoy survive the Bárcenas case?

Capital, Politics, PP, Spain, , , , , , , , ,

I’ve been meaning to write about the political corruption cases rocking CiU and the PP over the last few weeks, but every time I start an article, a new case appears. Since Gürtel, we’ve had (to name a few) Palau, Sabadell, Lloret… and Bárcenas. All the cases are serious but Bárcenas is the big daddy of corruption scandals. It’s is a case which could – and should – bring down the government.

€500

Originally linked with Gürtel, the Bárcenas case involves significant cash payments made on a monthly basis to senior members of the PP by its then treasurer, Luis Bárcenas. The money, mainly party donations and kickbacks, was handed out in envelopes. This went on for about 25 years until it suddenly stopped a few years ago, apparently on Mariano Rajoy’s orders.

Bárcenas also benefited from the tax amnesty which was one of Rajoy’s first policies. He managed to legalize millions of Euros kept previously in Swiss bank accounts.

What’s stunning about this case is that firstly, this isn’t mere anonymous claims made in El Mundo. It’s stuff that Bárcenas and his legal team seems to be admitting to. Secondly, Mariano Rajoy himself allegedly received €25,000 a year for 11 years in dodgy money. And this may have gone on until 2009.

With a spring and summer of protests on the way, I’m starting to wonder if Rajoy’s government can survive. If it does, it will be through our failure to act as citizens and residents of this corrupt country.

Simple arithmetic for ‘Spain bloggers’ – 14 pays

Capital, Internet computer, Spain

First, the mystery of 14 pays per year (all before tax):

18000 / 12 = 1500
x 12 = 18000

18000 / 14 = 1285.71
x 14 = 18000

It’s the same amount of money, numb nuts.

And what’s the point moving to Germany when they’ll only give you a €450 minijob anyway? I think some ‘Spain bloggers’ (a broadly middle-aged, self serving, real-estate-hawking lobby) need to learn a bit more about Spain and listen a little less to Germany.

Happy new year.

Pact for Catalan government made; 2014 referendum agreed

Capital, Catalonia, Politics, Spain, , , , ,

Govern de Catalunya

CiU and ERC have agreed the terms for forming a government in Catalonia. The major detail behind the agreement is that a referendum on Catalan independence ‘will be held in 2014’. The pact comes almost as late as it could – the government needs to be formed by next Monday to prevent new elections being held.

Also agreed on are at least 2 new taxes designed to prevent (or more likely, reduce) further cuts in public spending (updated info below). A tax on bank deposits (my understanding is that it’s not financial transactions that are being taxed, but people or firms putting money in the bank – so it sounds like a regressive tax at the moment, but a tax rather than cuts, all the same), and a tax on sweet fizzy drinks. Both taxes are being criticised by the Spanish government. Other taxes being considered are a restored inheritance tax and a tax on the nuclear power plants. Impressively, CiU’s “no alternative” mantra looks to have been a smokescreen for pushing through the cuts it wanted. Funny, that.

The agreement on the referendum isn’t quite as firm as the newspaper headlines are making it sound. It depends on the socio-political situation in 2014 and agreement between the two party leaders that it’s the right time to go ahead. So there are plenty of opportunities for various CiU bosses to derail the process between now and then. It seems that the referendum was the sticking point that caused these negotiations to stretch on for weeks. This doesn’t bode well for CiU’s commitment to the consulta but it indicates that ERC’s Oriol Junqueras has stuck to his guns.

The negotiations are ongoing, apparently. Artur Mas will be confirmed as president on Friday.

UPDATE: Some more finance info from the news – tax will also be raised on large stores. The total extra revenues expected from all the new taxes is about €1bn. The Catalan government had previously claimed it needs to make €4bn of cuts next year. So we’re only a quarter of the way there. Oh, and the Spanish finance minister has said that the Generalitat doesn’t have the right to raise taxes by decree. Curiously, it does have the right to cut health spending and cancel taxes by decree. Hopefully, this will force the PP to investigate similar measures for the whole of Spain.

I’ll add that this is proof that demonstrations can have some effect. Unacceptable austerity and 2 general strikes led to an increase in support for leftwing groups in Catalonia. And the September 11 demo has led to a pact to hold a referendum on independence, however flimsy that pact might turn out to be. I think it’s important to recognise that this is not the work of Artur Mas at all. He tried to take advantage of a situation (he wasn’t running things in the background as the loony anti democrats would have you believe) and then voters punished him. The war against austerity is not won. It is more important, I still believe, to beat austerity than to hold a referendum. But the referendum must be held.

#11S and #14N helped bring this pact about. Those of us who supported either movement, or both, must keep the pressure on our politicians. For ordering cheap HCG drops, follow the link.