Madrid, Catalonia play down secret talks on independence
The Spanish prime minister and Catalonia's regional leader met secretly last week to discuss improving Catalonia's fiscal deal with Madrid in exchange for easing off its independence bid.
The Spanish prime minister and Catalonia's regional leader met secretly last week to discuss improving Catalonia's fiscal deal with Madrid in exchange for easing off its independence bid.
Spain鈥檚 central government and its secessionist-minded economic motor Catalonia hardened their positions Wednesday after a discreet attempt to renegotiate the region's fiscal deal with Madrid went nowhere.
It emerged last week that Prime Minister Mariano Rajoy and Catalonian regional leader Artur Mas recently met to discuss the possibility of restructuring Catalonia's fiscal pact with Madrid 鈥 enabling the state to send less of its GDP to the federal government and ease its own recession woes 鈥 in exchange for the state dropping its plans to pursue a referendum on Catalonian independence.
But today, speaking at separate events, both men played down the possibility in comments that appeared to be directed to their respective power bases and to preempt internal divisions in their support.
Rajoy focused on economy
Mr. Rajoy, addressing leaders of his Popular Party (PP), showed no signs of budging on Catalonia鈥檚 demand for a significant renegotiation of its fiscal relation to the central government. He also asked for more loyalty from his party when it comes to efforts to negotiate a deal with regional governments, in the clearest sign yet that the government is under intense pressure from internal dissent.
Rajoy, who was addressing PP barons, demanded 鈥渋nternal cohesion and unity,鈥 which described that as core to his party鈥檚 identity, especially when it comes to letting the government negotiate with other regions. That was a clear reference to Catalonia鈥檚 secessionist challenge and the growing public criticism of PP hawks of what they perceive as weakness from Rajoy.
鈥淲e will continue listening to everyone, those in my party and those outside, because that is my duty, even if some appear not to understand that,鈥 Rajoy said.
Rajoy didn鈥檛 specifically mention Catalonia, but he reiterated he is willing to talk about renegotiating fiscal conditions with the largely autonomous regional governments. He warned, however, that the priority is Spain鈥檚 broader economic crisis.
Catalonia鈥檚 economy is the size of Portugal鈥檚, but markets have long shut it out as its deficit increases. In 2012, the deficit was equal to nearly 2 percent of its gross domestic product. The central government has bailed out Catalonia several times.
Mas committed to independence referendum
Mr. Mas, during a review of the first 100 days of his current administration, reaffirmed the commitment of his party, CiU, to the current pro-independence coalition. Though he raised doubts about the coalition's survival 鈥 while they are both pro-independence, CiU and its coalition partner, the radical left ERC, differ on their economic policies 鈥 he insisted his government will not alter its plan to seek a referendum on seceding.
In his speech Mas tied the region鈥檚 economic policies 鈥 including a new fiscal pact with Madrid 鈥 to pursuing the Catalonian parliament-approved path toward a referendum. Mas said talks with the central government could lead to a more flexible deficit terms that require the Catalonian government to cut an additional 4 billion in spending, although he suggested he couldn鈥檛 trust the government to keep its word.
鈥淲e talked about the [referendum] but there is no other agreement other than to keep talking,鈥 said Mas during his address to the Catalonian parliament, in reference to his secret meeting last week with Rajoy.
In effect, Mas is betting his political survival on preserving his pro-independence coalition long enough to stabilize the region鈥檚 economy, or else face the third regional elections in less than two years amid his government's growing unpopularity and without the unifying nationality issue.
Mas said his government鈥檚 coalition was based on defending Catalonia鈥檚 right to hold a referendum, with or without Madrid鈥檚 permission. But his government is growing weak as a result of the region鈥檚 dire economic shape, its unsustainable fiscal deficit, and Spain鈥檚 most severe austerity measures. The ERC has said it will not necessarily support his economic policies.
鈥淣obody knows what will happen. I want this government to last the four years it鈥檚 supposed to. But things could change on short notice,鈥 Mas said.