Council of Ministers

Government urges Regional Government of Catalonia to return to the constitutional framework so as to avoid Catalonia falling into a "serious economic downturn"

2017.10.13

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Moncloa Palace, Madrid

The government analysed a report presented by the Minister for the Treasury, Cristóbal Montoro, drafted with the aim of submitting the Budget Plan for 2018 to Brussels.

In this regard, Soraya Sáenz de Santamaría explained that this report states that "2018 should be a good year for growth and job creation", but that the events unfolding mean that the government must be "more prudent". In fact, she announced that ifs this issue is not "resolved soon", the government "could be forced to lower the expectations for economic growth for 2018".

The Vice-President of the Government argued that "the rating agencies have warned that the political and economic instability may prejudice the Catalan economy and that the continued exit of companies could end up leading to a recession in Catalonia, which would undoubtedly affect GDP growth in general". "Investments are slipping away and it is the citizens, companies and their workers in Catalonia who will pay the price for this", she added.

Soraya Sáenz de Santamaría also stated that the figures for the second quarter show a 10% drop in investments in Catalonia, while the rest of Spain grew by 13%, and pointed to the "dramatic fall in tourism". According to the sector figures, "hotel reservations in Barcelona are down by 20 to 30%", said the Vice-President of the Government.

Against this backdrop, Soraya Sáenz de Santamaría reiterated that "the Regional Government of Catalonia is creating the perfect conditions for dooming Catalonia to a sharp downturn, and even an economic recession".

Return to constitutional framework

Pool Moncloa/ César P. SendraSoraya Sáenz de Santamaría asserted that "the Catalan authorities still have time and the opportunity to recover institutional normality and harmony among its citizens, and bring an end to this instability".

On this point, she underlined that the government has asked a "simple question - requiring a "yes" or "no" answer - to the President of the Regional Government, Carles Puigdemont, to end a complex problem. "With the right political will, he has an opportunity to return to the constitutional framework of co-existence and to the democratic system under the rule of law", she added.

The Vice-President of the Government insisted that the government has offered Carles Puigdemont "dialogue within the framework of the law and in Parliament" where all the political forces and people of Spain are represented.

In this regard, Soraya Sáenz de Santamaría recalled that "a study committee to asses and modernise the autonomous State has been set up at which the President of the Regional Government of Catalonia can make his reflections, along with proposals".

On another note, the Vice-President of the Government maintained that "nothing is set in stone in our constitutional framework and everything can be spoken about, but from respect for the rule of the democratic game and the rights of individuals".

According to Soraya Sáenz de Santamaría, this offer of dialogue, which not only comes from the government but from a "very large majority" of members of the Lower House of Parliament, is a "sensible, moderate and understandable" offer.

Agreements adopted by Council of Ministers

Creation of 93 new courts

The government agreed to set up 93 new courts and judicial appointments with the aim of adapting the justice system to existing needs and guarantee the effective protection of citizens' rights.

These judicial appointments come on top of the 16 magistrate appointments that the Council of Ministers approved back in March to satisfy the needs of second-instance criminal trials, such that the total number of new units set up in 2017 amounts to 109.

The Vice-President of the Government specified that in order to decide how many new courts to set up, consideration was given to "the workload of 3,765 judicial bodies in Spain, particularly those that have a workload exceeding 100%, which was about half". She explained that consideration was also given to criteria such as "the number of cases pending resolution, the average response time, the pre-eminence of first instance over second instance cases, and the preference for strengthening civil and employment jurisdictions where cases more directly affect citizens".

Reduction in toll fees on P-68 in La Rioja

Pool Moncloa/ César P. SendraThe Council of Ministers authorised a budget change with the aim of improving the functionality of the highway corridor made up of the AP-68 motorway and the N-232 highway, in compliance with the agreement reached with the Regional Government of La Rioja.

Soraya Sáenz de Santamaría specified that a discount of 75% of the tolls charged on certain heavy vehicles will be applied on the stretch between Zambrana and Tudela on the AP-68 motorway.

Ecuador signs up to trade agreement between EU and Colombia and Peru

The government approved the signing "ad referendum" of the Protocol for Adhesion to the Trade Agreement between the European Union and its Member States, on the one hand, and Colombia and Peru, on the other hand, so that Ecuador can also sign up.

This agreement, highlighted the Vice-President of the Government, "constitutes a highly positive element in the framework of the strategy, supported by Spain, of stepping up ties between Ibero-America and the European Union". Ecuador will benefit from new access to the EU market, with 500 million consumers, while the EU will have greater transparency and security for both its exports and for its investments in that country.

When asked about the possibility that the authorisation for the adhesion of Ecuador will facilitate the elimination visa requirement for Ecuadorians to visit Spain and the European Union, the Vice-President of the Government clarified that "this does not depend on the wishes of Spain", although the government will work "in the same way as it did with the case of visas for the citizens of Colombia and Peru".

Other agreements

Pool Moncloa/ César P. SendraThe Council of Ministers authorised the signing of a meeting between the Kingdom of Spain and Romania to eliminate the dual imposition of taxes on income and prevent tax evasion and avoidance.

The Vice-President of the Government pointed out that the measure has two main aims: "to avoid paying taxes twice by offering suitable tax treatment adapted to the circumstances of those taxpayers that undertake economic activates at an international level, and to facilitate collaboration between the tax authorities".

The government also agreed not to proceed with the extradition process for the citizen of German nationality, Erdogan Akhanli, requested by Turkey.

Current affairs

Pool Moncloa/ César P. SendraAt the start of the press briefing following the Council of Ministers, the Vice-President of the Government passed on the government's condolences to the family of Captain Borja Aybar García, who died in an accident at Los Llanos (Albacete) aerodrome when returning from taking part in the parade for the National Day of Spain.

Soraya Sáenz de Santamaría also extended these condolences to all the Armed Forces. "You represent Spain on many international missions, you convey the commitment by the people of Spain to peace in every corner of the world, and your generosity and commitment is a source of pride for our citizens as a whole".

The Minister for Defence posthumously awarded Captain Borja Aybar with the Cross of Aeronautic Merit with a yellow bar.

Non official translation