Catalan VP claims region is responsible for 85% of Spain’s deficit reduction

SitgesThe vice-president and finance minister of Catalonia, Oriol Junqueras, claimed that the efforts made by the Catalan government towards the reduction of the deficit represent 85% of the total reduction in the public deficit made by all Spanish administrations combined. He made this claim during his remarks at a business congress in Sitges, near Barcelona, held by Catalonia’s Cercle d’Economia. In front of an audience full of businesspeople, he also gave precise numbers: according to the Catalan government’s calculations, they have made €3.91 billion worth of savings.

"I hope that you’ll take what I’m about to say sportingly: we had repeatedly asked for [the debt limit] to be higher", the minister stressed. According to Junqueras, increasing Catalonia’s debt limit was an "economically rational" request, because Catalonia needs "[financial] muscle and a strong fiscal basis to face its challenges".

Junqueras also explained the nature of the relationship between the Catalan and Spanish administrations to the entrepreneurs. The minister insisted that relations are cordial, but no progress is being made: "To give only one example, a year and a half ago we asked to change some loans from short to long-term; both ministers were in agreement, the bank agreed, we agreed, it would have no economic cost, it’s a mere bureaucratic simplification. Today we’re still waiting for them to approve it”, Junqueras stated.

The minister believes that the best option would be a relationship between equals: "Responsibility doesn’t scare us at all; we like it so much, we want to take it all on. We’re the first to say that there needs to be a correspondence settlement". One of the Catalan government’s objectives is, as Junqueras noted, to have market access again, "as everyone does", he said, and to stop relying on the Spanish government-provided Regional Liquidity Fund (Fondo de Liquidez Autonómico in Spanish). "There’s also a broad consensus that the reputations of the institutions are crossed over because there’s an administration —in Madrid— that collects 95% of tax revenues and another administration —in Catalonia— that administers it; what we want is to manage it all ourselves and safeguard everyone’s reputation", Junqueras clarified.

The entrepreneurs’ doubts

In the face of the businesspeople’s doubts, Vice-president Oriol Junqueras also insisted that an independent Catalonia would not end up out of the EU: "We’re pro-European and there’s not a single word in the treaties that talks of expulsion from the European Union. Only one way out is described, upon the member state’s request, and I assure you that we will not be requesting it. What’s more, it would be in no-one’s interest; therefore, there’s absolutely no reason for concern".

As for the fears of possible relocations in the event of Catalonia becoming an independent country, Junqueras assured that it wouldn’t come to that: “If anything, new companies will choose to relocate to Catalonia”, the minister noted. On which, Junqueras remarked that Catalonia is seeing record levels of exports and foreign investment, as well as a faster rate of industrial growth than the rest of Spain.