Junqueras answers the ultimatum from the Spanish government: ‘We will make no more cutbacks’

The Vice-President and Minister of the Economy, Oriol Junqueras, Today answered the ultimatum that the Spanish tax minister, Cristóbal Montoro, sent to the Catalan government (and also to the Valencia, the Balearic and some ten autonomy is more) to withhold the necessary credit to fulfil the deficit for 2015. The ultimatum is for fifteen days. Junqueras, after meeting with the President of the Government of Catalonia, Carles Puigdemont, appeared to tell Montoro that the Catalan government is not considering making any further cutback due to the extreme situation suffered by health, education and social services; and he reminded the Minister that if the Spanish government fulfilled its commitments, the Government of Catalonia would meet the deficit target imposed on it.

The Vide-President says, ‘If the ministry wants to oblige the government of Catalonia to impose limitations on credit availability it is because it knows that it will not fulfil the obligations it has contracted with Catalonia.’ According to Junqueras, ‘it is a further arbitrariety of the Spanish government, like that of not meeting the positive liquidation of the bestreta of 2012, or not complying with the law of budgetary stability providing for the deficit ceiling of 1.07% for the Government of Catalonia, and setting it at 0.3%. It is obvious that the whole of the budget of the Government of Catalonia is decided by the Tax Ministry. Not only does it want to decide on the whole of the budget, but it also wants to decide on its total distribution and not respect the competence of the Government of Catalonia and the Parliament, and the citizens of Catalonia.’ And he insisted, ‘If they want to close a hospital, the ministry will have to come and do it’.

According to Ministry data, the Government of Catalonia has exceeded the deficit target by two points, but Junqueras questions this. ‘It is not true, a large part corresponds to the nonfulfilment of the Spanish government. 0.75 of this deficit refers to non redcurrant and regulated items, and not to the budget.  These are not recurrent items and do not refer to public investment.  The difference between the 0.7 and the 1.95 would not be there if the law of budgetary stability was imposed as agreed (…) They would be no deficit if the Spanish government had complied with the law that it approved.’

Montoro’s ultimatum would cost more than a thousand million

The Secretary for economy of the Government of Catalonia, Pere Aragonès,  this morning told Catalunya Radio that the cost of meeting the deficit demanded by Montoro could amount to between a thousand and two thousand million euros. Aragonès explained it, ‘The amount would be equivalent to closing the prisons of Catalonia for one year, the whole of the administration of justice and three of the main hospitals in Catalonia.  It does not make any sense at all.  The Independent Authority of Tax Responsibility itself has told Minister Montoro that he is making the autonomous communities take on a burden that they cannot assume’.

Valencia region, the Balearic Islands and most of the autonomous communities have also received the same demand from Montoro. Aragonès insisted that the measure does not only affect Catalonia, and that it requires a political solution and not one of accounting. ‘The solution has to be shared between us all and requires making the deficit targets more flexible and first of all fulfilling the financing model for 2009.  The taxation estimates concerning the Government of Catalonia, which come from the financing model, have been systematically calculated below the actual level. 1,400 million lower in 2014, between 1,060 and 1,090 million lower in 2015, and in 2016 we believe we might be faced with a similar figure. Therefore it is the Spanish government which is breaching its own laws.’