Week by week over- sight or collapse

Mariano Rajoy’s government yesterday maximized the siege of the Generalitat forcing it to justify each invoice before payment on a weekly basis to ensure that not “a single euro” would be spent on the referendum of October 1 under the threat of turning off the tap of the FLA, the liquidity fund which ensures that Spain’s regional governments can pay suppliers. “It is a preventive action designed for the wellbeing of the Catalan people. Not one euro will be spent on an illegal referendum administered by a minority,” said the Spanish government spokesman, Íñigo Méndez de Vigo, following yesterday’s cabinet meeting.

The announcement met with some confusion in government circles as few had been informed and even fewer had any idea of how the measure would be played out. In November last year Rajoy introduced a similar measure to control spending but this time there is a difference.

On the back of pressure being placed on Generalitiat department directors and senior officials facing threat of legal action for involvement in the referendum process, this new move now directly takes aim at three new officials in the areas of finance who will be responsible for submitting the necessary information for scrutiny. These are the Directors General of the Budget, Financial Policy, and Intervention. The existing monthly report has not been substituted and must be sent to Madrid.

The decision has greater ramifications than appear at first sight. Should Madrid decide an “illegal” payment has been made or is being contemplated, technically minister Montoro could suspend Catalonia’s participation in the FLA which would lead to suspension of payments of the region which accounts for 20% of Spain’s economy.