The Catalan Government today approved a credit supplement of 813.9 million euros to cover new expenses, mainly the authorized salary increase for 2017, 2018 and 2019 for public employees and the return of 40% of the extra pay of 2013. Unable to approve the budgets for this year, the executive has had to give the green light on Tuesday to a decree law that authorizes this credit supplement, and that the Catalan executive assumes that it will now be validated in the Parliament with “very large majority “and even” unanimously “. However, and in order for the officials to be able to collect, the State will have to put on the table the advances of the 2019 financing fund that Catalonia claims the Government. Specifically, of the 814 million of the credit supplement approved Printable Deposit Slip today, 241 million will arrive through the Financial Facility Fund (the FLA substitute), which covers the deficit target of 0.1% of GDP authorized for 2019. The amount the remaining, 573 million, should be covered by advances on account of the financing model for this year, since it must receive a total of 875 million additional funds through this channel.
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In this line, the president of the Generalitat and responsible for Economy, Pere Aragonès, has accused the government of “playing electorally” with the advances of the financing model and with its update despite, he said, the central executive is bound by law to pay these funds. According to government calculations, the Autonomous Communities should receive some 7,000 million euros as a whole for this concept. The Catalan government works with an extension of the 2017 budgets, the last ones that were approved, but these accounts do not cover the salary increases approved for 2017 – 1% -, for 2018 – of 1.95% -, and 2019 – up to 2.75% – because these increases were authorized after the Catalan accounts had already been processed. The credit supplement approved yesterday will also cover the higher personnel costs generated in the last two years as a result of the increase in the number of doctors and professors that has been in place since 2017.
Vice President Aragonès explained that today’s decree is a “first step” of the contingency plan designed by the Government to try to rescue all aspects of the 2019 budget that can be, although the counselor has commented that it is not the same to work with budget than with a budgetary extension. The Catalan Executive calculates that in 2019 it needs additional spending of 1,265 million euros. The German institutes confirm the worst fall of the last seven years. The Spring Report of the German Economic Institutes, which has only added pessimism to the situation, with a growth forecast for this year of only 0.8% of GDP. Experts point out that the cooling has not only affected the automotive industry, but the entire manufacturing sector as a whole, something that can partly be attributed to the risks related to the imposition of tariffs but also, they warn, that Germany is not rising in time to the train of Printable Deposit Slip and artificial intelligence.