At first glance, it might seem surprising how much a small country such as Catalonia is doing to fight against the global economic crisis. Much larger countries, and indeed the European Union, are having to use all their considerable resources to come up with suitable responses.
The government of Catalonia is keenly aware of the magnitude of this crisis and the need to provide a coordinated response at a global level. It is also aware of its limits and the potential scope of its political actions. However, it has taken the view that these limitations cannot be an excuse for inaction. Nor can Catalonia – the main economic engine of Spain – let its considerable resources deteriorate, or fail to respond to the needs, uncertainties and aspirations of the 7.5m Catalans.
For these reasons, the government of Catalonia swiftly accepted its responsibilities, first of all by talking clearly with its citizens, being honest about economic prospects, many of which take a negative view, and presenting a diagnosis – no matter how severe it might seem – of the extent and depth of the financial and economic crisis, always distinguishing between global and local aspects. In fact, long before the possibility of the current economic crisis was glimpsed on the horizon, the government of Catalonia was aware of the need to transform the country’s economic growth model. It was already spearheading sweeping economic and social changes to meet the needs of internationalisation, aiming for quality jobs and competitiveness in the Catalan economy.
As well as telling its citizens the truth about the seriousness of the crisis, the government of Catalonia has aimed to reassure the country that help is at hand: that even the most weakened business sectors and the more vulnerable segments of society can hold on in this time of adversity. The government is executing this palliative action in accordance with its competences and in conjunction with the actions taken by the government of Spain. We are helping companies to cope with difficulties, stimulating new entrepreneurs to develop their projects, reinforcing the automotive sector and reactivating the construction sector. We are also helping families with difficulties to pay their mortgages and stepping up training for workers who have lost their jobs.
All told, €7,750m has been spent on these palliative actions, which is equivalent to 3.5% of Catalonia’s GDP. Our efforts compare favourably to those countries with the most active role in fighting the crisis, according to figures from the International Monetary Fund.
The Catalan government is aware of the exceptional nature of some of this aid, which must be limited in duration and be in accordance with the European Union’s guidance. That is, public aid can be neither permanent nor gratuitous, and it especially cannot prolong situations without a viable future. The temptation of protectionism has to be resisted. At the very least protectionism would have the pernicious effect of reducing our economy’s degree of openness.
While taking urgent action to soften the immediate effects of the crisis on the most vulnerable sectors, the government is, importantly, taking strategic, long-term actions so that the country will emerge from this episode stronger than ever. Our aim is to revamp the foundations of economic and social progress in Catalonia. Obviously, here again the government of Catalonia has a limited scope of action, but within these limits it is taking the initiative.
First, it is making an extraordinary investment effort in infrastructure. The total amount of construction underway in Catalonia by the Catalan and Spanish governments accounts for more than €12.5bn.
Second, it is enforcing the national pacts reached on research and innovation, housing and immigration.
Third, it is undertaking an in-depth reform of our educational system. The Catalan Parliament is due to approve an innovative Law on Education in the near future.
All of these initiatives stem from a vision of the future of the country that goes beyond partisan politics. They have been designed and are being implemented through a far-reaching political and social agreement.
And looking beyond its own borders, the government of Catalonia seeks to contribute to and influence the Spanish and European realms of politics, specifically in the design of and decisions on major structural reforms. They include reforming the system of labour relations to encourage worker mobility, the revision of collective bargaining processes and the alignment of salary rises with business productivity. Our concerns also include the reform of the rental housing market and the adoption of suitable measures to step up the transformation of certain regulated sectors, especially trade, services, energy and transport, by properly applying the European directives. On these pages I want to particularly stress the importance of Europe-wide reforms, particularly the need to make headway towards a common energy policy.
We here in Catalonia have always stressed, and continue to do so, that the solution to many of the ills and problems plaguing the peoples of Europe in the global setting leads us inexorably to a stronger and more united European Union. In short, the solution to the crisis is more Europe. We must turn our backs on the trends and temptations that emerge at difficult times; if we do not, the cost will be high, even though it will only come into sharp focus in later years.
So this is a survey of the active policies that a sub-state government, that of Catalonia, is courageously undertaking, wielding the instruments of self-government it has at its disposal. Its efficacy relies largely on the capacity to coordinate these initiatives with those at local, Spanish and European level.
However, as important as government activism, there is the need to achieve a positive impact on the collective mood of society in order to encourage a can-do fighting spirit that will wipe away pessimism and resignation.
Catalonia is a small European country that has surmounted many difficult moments throughout its history. For this reason, we Catalans know that, to emerge from the crisis, we must be realistic, hold steady in the face of adversity and make sacrifices to overcome it. We know that we have to work harder, and not necessarily to earn more. But this is the price that we must pay to ensure a future of economic prosperity, social cohesion and cultural progress.
This section is sponsored by the government of Catalonia.
For further information:
Website of the President:
www.gencat.cat/president Presidential Department
www.gencat.cat/presidencia Website of the Generalitat de Catalunya
www.gencat.cat