The Catalan Government requests €5.02 billion from the Spanish Executive

The Catalan Government announced this Tuesday it will officially apply for €5.023 billion from the Spanish Government’s Liquidity Fund for the Autonomous Commnities in order to fulfil all its financial obligations until the end of the year, since it cannot turn to the international financial markets anymore. However, the Spokesperson of the Catalan Government, Francesc Homs, emphasised that this is not a bailout, since the money requested comes from the Catalan taxpayers. In fact, Catalonia contributes 8.5% of its annual GDP to finance services and investments made in other parts of Spain. The annual Catalan solidarity contribution to Spain is €17 billion. For this reason, and in a context where the Catalan Government is requesting a fairer fiscal agreement between Catalonia and Spain, Homs emphasised that the Catalan Executive will not accept any “political conditions” to receive this financial assistance, beyond the austerity plan for the 2012-2014 period already presented and approved by the Spanish Government. The Spokesperson lamented that the Liquidity Fund was not in place yet and he hoped the Spanish Government will activate the mechanism very soon. In addition, Homs insisted that the Catalan Government, which is run by the Centre-Right Catalan Nationalist Coalition (CiU), will meet the deficit targets. Applying for the Liquidity Fund means that the Spanish Finance Ministry will have access to the detailed accounts of the Catalan Government on a monthly basis and it could implement further budget controls, although it does not represent a direct intervention.

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