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How the Catalonia crisis has paralyzed Spanish politics

A man holds a Catalan pro-independence flag while others hold placards reading “Freedom” at a November demo in Barcelona calling for the release of jailed separatist leaders. Photo: AFP

A 2018 budget that has still not been approved, a constitutional reform left hanging in the air… Far from a mere territorial issue, the Catalan crisis has also paralyzed Spanish politics as a whole.

The independence drive, which caused the country's biggest crisis in decades, has only added to the woes of a parliament already deeply fragmented as warring political parties make any agreement difficult.

“This is going to be an exceptionally unproductive legislature,” said Jose Fernandez Albertos, a researcher at the Spanish National Research Council.

First and foremost, Spain's national budget for 2018.

Prime Minister Mariano Rajoy's conservative Popular Party (PP) and his allies — centre-right Ciudadanos and lawmakers from the Canary Islands — need the support of five ..

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A man holds a Catalan pro-independence flag while others hold placards reading "Freedom" at a November demo in Barcelona calling for the release of jailed separatist leaders. Photo: AFP

A 2018 budget that has still not been approved, a constitutional reform left hanging in the air… Far from a mere territorial issue, the Catalan crisis has also paralyzed Spanish politics as a whole.

The independence drive, which caused the country's biggest crisis in decades, has only added to the woes of a parliament already deeply fragmented as warring political parties make any agreement difficult.

"This is going to be an exceptionally unproductive legislature," said Jose Fernandez Albertos, a researcher at the Spanish National Research Council.

First and foremost, Spain's national budget for 2018.

Prime Minister Mariano Rajoy's conservative Popular Party (PP) and his allies — centre-right Ciudadanos and lawmakers from the Canary Islands — need the support of five MPs from the Basque Country's PNV nationalist party to see it through.

But the PNV has baulked at Madrid's imposition of direct rule on Catalonia after its regional parliament declared unilateral independence on October 27th.

So it has so far refused to give its support like it did last year, a position it is likely maintain until a regional election in Catalonia on December 21st.

'Apathy'

Then there is a Spanish territorial reform which is proving difficult to push ahead, even against the background of Catalan leaders wanting to break from the country.

Spain is divided into 17 semi-autonomous regions, but some of them — including Catalonia — have grievances and are asking for financing that would be better suited to their needs.

Any territorial reform would have to involve an improvement in the regional financing system, which varies from one part of Spain to another, or an ambitious overhaul of the 1978 Constitution.

The Socialists got a pledge from Rajoy's PP that it would look into a constitutional reform in exchange for supporting Madrid's imposition of direct rule on Catalonia.

But now, Rajoy is dragging his feet. "We can't talk of reforming the constitution without knowing exactly what reform is needed," he has repeatedly said.

"The problem isn't that there aren't proposals to update our constitution, the problem is we have a government that is devoid of political initiative," said Socialist party leader Pedro Sanchez last month, accusing it of "apathy."

For Fernandez, a constitutional reform will be hard to agree on. He considers it would be more realistic to "invest political capital in other solutions that don't involve a constitutional reform," such as legislating on inequalities or better access to basic rights.

Fragmented parliament

But that's just the problem.

Putting Catalonia aside, Spain's parliament is full of squabbling political parties that don't agree.

In the year since November 2016, when a new legislature began, a mere nine ordinary laws have been approved, compared to 48 in 2015 and 36 the year before that.

Rajoy's minority government, which has promised the EU to reduce Spain's deficit to below 3 percent of GDP in 2018, has vetoed dozens of opposition-led initiatives, arguing they would involve more public spending.

Formed after close to a year of political blockage after two inconclusive elections, Rajoy's PP only has 137 lawmakers out of 350, far from the absolute majority he enjoyed from 2011 to 2015.

The arrival of two relatively new parties on the scene — far-left Podemos and Ciudadanos — has further divided a political scene once dominated by the PP and Socialists.

And that's hurting the work of the parliament as parties disagree on various proposals.

Amplify divisions

The Catalan crisis has only amplified these divisions, with weekly plenary sessions becoming a ping pong match of accusations.

"What Spain needs right now is more social and territorial cohesions," said Socialist lawmaker Meritxell Batet in parliament last week.

"Spain needs a project for the future, and you're not providing it," she told finance minister Cristobal Montoro and Ciudadanos chief Albert Rivera.

Rajoy's personality also explains the legislative paralysis, said Antonio Torres del Moral, a constitutional law professor at Spain's UNED University.

"He is one of those politicians who thinks that time fixes many things, so he prefers not to take risks by launching legislative initiatives," he said.

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Spain – Gas falls below 90 euros per MWh for the first time in almost two months

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The price of TTF natural gas for delivery next month has fallen below 90 euros on Friday for the first time in almost two months and closes a week marked by the decision of the European Commission to cap gas with a drop of 29, 36%.
According to data from the Bloomberg platform, gas closed this Friday at 83 euros per megawatt-hour (MWh), 8.9% less than the day before and the first time it has lost 90 euros since last October 31.
After months of negotiations, the EU agreed on Monday to set a cap of 180 euros on contracts linked to the Amsterdam TTF index with a price difference of at least 35 euros above the average price of liquefied natural gas in the markets.

EU countries agree on a cap of 180 euros for gas with the support of Germany
In a report this week, the Swiss investment bank Julius Baer indicated that the chances of the mechanism being activated are low and pointed out that the chosen formula was not very effective in avoiding the multiplier effect that gas has on the price of electricity. However, he reiterated what was said in other previous reports: “Energy supply risks are minimal and prices should continue to decline in the future” due to the availability of raw materials from Asia to offset cuts from Russia.

Gas tends to fall during the hot months due to lower demand, but this summer it has reached historic heights as European countries were buying to face the winter with their tanks full and reduce their dependence on Russia. The price fell in September and October due to lower demand once the warehouses were full due to the high temperatures at the beginning of autumn, but in November it picked up again and 66% more expensive.

This article was originally published on Público

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Spain – The retirement age rises to 66 years

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Ordinary retirement at age 65 ends for those who have contributed less than 38 years. In fact, 2023 will be the last year in which this can be done since it will be necessary to have a contribution career of a minimum of 37 years and nine months to be able to retire with the reference age of the last century, since it was established in 1919, and once the year is over another quarter will be added to be able to do it without cuts in the benefit.
This requirement means that to access ordinary retirement at age 65 without loss of pay, it will be necessary to have been working, at least, since April 1985 for those who exercise this right in December 2023 and since May 1984 for those who intend to do it in January.

More than ten million contributory pensioners
In the last decade, and coinciding with the implementation of the delay program, the real retirement age of Spanish workers has increased by one year, from 63.9 in 2012 to 64.8 in mid-2022, according to data from the Financial Economic Report of the Social Security included in the General State Budget.

Contributory pensions will have a historic rise of 8.5% as of January as a result of the disproportionate increase in the CPI, while for non-contributory pensions the revision will be 15%. This review will place the average pension of the contributory system at 1,187 euros per pay, while the retirement pension will rise to 1,365, the disability pension will reach 1,122 and the widow’s pension will reach 847, as a result of applying the 8.5% increase.

The Social Security forecasts point to next year, and while waiting to find out the real effects that the rise may have on the payroll due to its “call effect” to bring forward retirement given the opportunity to alleviate with it the penalties for anticipating it, the number of pensioners will consolidate above ten million, with almost two-thirds of them (6.37) as retirees, to which will be added 2.3 million widows and almost one affected by work disabilities.

This record number of pensioners will place the cost of pensions at 209,165 million euros, the bulk of which (196,399, 93.8%) will be used to pay benefits, including non-contributory ones. Health care has a budget of 1,890 million euros and social services another 3,791, while the remaining 7,144 are dedicated to operating expenses.

On the revenue side, the largest contribution comes from the contribution chapter, which will amount to 152,075 million and will leave the gap with contributory benefits at 36,765.
The imbalance will be covered by a contribution of 38,904 from the Government, to which is added a chapter of others worth 18,116 and which includes everything from sanctions to asset disposals, among other concepts.

Read more of this from the source Público

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Spain – Workers protest in Madrid for a wage increase

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Inditex workers have demonstrated in Madrid this Saturday, at the beginning of the winter sales, for a wage increase and “decent” working conditions, during a day of a strike called by the CGT union.
Several hundred people have gathered to protest on Calle Preciados in Madrid in a day of shop assistants’ strike that was called throughout Spain, but which has had its greatest impact in the Community of Madrid.

This concentration occurs after the agreement was reached in Galicia on December 23 after several days of protests, in which the store employees of A Coruña reached an agreement with the group. Under this agreement, store staff, more than 1,500 people in Galicia, will have a monthly increase in salary bonuses of 322 euros during the first year, 362 euros during the second and 382 euros thereafter.

The secretary of the state section of CGT in Zara and Lefties, Ánibal Maestro, explained that the Inditex workers have decided to “take a step forward against precariousness”.

“The benefits are distributed among the shareholders and directors meeting and we demand a salary increase, so that they realize that the workers are the engine”, he has defended.

For their part, the CCOO and UGT announced this week that they will start negotiating with Inditex on January 25 at the state table on global wage measures that offset the impact of inflation in all group companies and in all territories.

Specifically, the CCOO recalled that in recent weeks, and in coordination with the UGT, the firm chaired by Marta Ortega has been asked to formalize the state table throughout this month to address global aspects of salary policy in all companies of the group and in all territories, bearing in mind both the situation and levels of provincial collective agreements, as well as the impact that inflation is having on the purchasing power of the workforce, as well as the commitment to review and improve the system of commissions for Store staff.

This article was originally published on Público

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