Spain: Catalonia boycotts meeting with Montoro on deficit

Spain must change its policies, Mas-Colell letter to Montoro

31 July, 16:20

(ANSAMed) - MADRID, JULY 31 - Catalonia is boycotting this afternoon's meeting between the autonomous regions and Spanish Finance Minister Cristobal Montoro, Catalan government spokesperson Francesc Homs said at a press conference on Tuesday. Rather, Catalan finance minister Andreu Mas-Colell has written Montoro a letter requesting he ''rectify his policies,'' Homs said.

Catalonia has accused the central government of not extending to the autonomous regions the EU deadline extension on deficit reduction it has obtained for itself, thus ''making their financial situation unbearable.'' Spain is imposing regional deficit-reduction targets of 1.5% of GDP in 2012, 0.73% in 2013, and 0.1% in 2014. In what is its third cash flow crisis in the past few months, Catalonia today announced it is suspending its July 400 million euro payment for hospitals, schools, and public services, putting 100,000 public employee salaries at risk.

The region requested aid from Spain's 18 billion euro regional bailout fund a week ago. (ANSAMed).

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