Interview with Jaume Duch, Minister of European Union and Foreign Action of Catalonia

16 Jan Interview with Jaume Duch, Minister of European Union and Foreign Action of Catalonia

What is Catalonia doing to strengthen its presence in the European Union and become a significant player in European decision-making?

Catalonia is one of Spain’s most important regions. It encompasses 16% of the national population but accounts for almost 20% of Spain’s gross domestic product (GDP) and 22% of its industrial output. Spain plays a significant role in the European Union, and decisions are increasingly being made at the EU level rather than at the national or regional level. Catalonia enjoys a high level of self-government, meaning that many policy decisions and their implementation are handled locally. This includes areas like industry, education, health services, transport, infrastructure, environment and international trade. These decisions are made within the framework of European laws, directives and regulations. Given this context, it is crucial for Catalonia to be highly present in Brussels as it is no longer enough to focus only on Madrid, Lisbon or Stockholm.

One of the main priorities for the Catalan government is to enhance its visibility and influence in Brussels. This involves creating and strengthening networks, whether inter-institutional, multilateral, bilateral or even lobby-type networks focused on the Council of Ministers, European Commission or European Parliament. Catalonia cannot do this alone; it needs to form alliances without solely relying on the Spanish government. Catalonia is now focused on boosting its networking capabilities. The region has increased its physical presence in Brussels and has become more active in the Committee of Regions and the Council of Ministers. It has also strengthened its relationships with Catalan and Spanish members of the European Parliament and business delegations.

How has the new Catalonian government set the stage for the region’s economic advancement?

In mid-August 2024, a new government took office in Catalonia following the May 12th elections. For the first time in 40 years, there is no pro-independence or pro-nationalistic majority in the Catalan Parliament. This new government is pro-constitutional and committed to respecting the rule of law. Catalonia continues to enjoy significant autonomy, ranking among the most powerful regions in Europe, comparable to regions like Baden-Württemberg in Germany. Despite this autonomy, Catalonia respects the framework set by the Spanish constitution. This brings stability to the region and creates a favorable environment for progress. Catalonia is now — more than ever — a reliable partner for other regions and is open to furthering international relations, investment and business. The Catalan government’s priorities are aligned with those of the European Commission and the European Union, particularly in areas such as reindustrialization, green policies, digital policies, completing the European internal market and developing new sources of energy. This alignment enhances Catalonia’s stability and prospects for the future.

What budget has the Catalonian government pledged to increase development cooperation?

The goal is to allocate 0.7% of the Catalan government’s public budget to cooperation and humanitarian aid by the end of 2030. This goal — set over the next six years — requires significant budgetary efforts. The 0.7% would fund both cooperation with third countries and humanitarian aid such as initiatives in Lebanon, Palestine and Syria. This aligns with the government’s broader priorities and is a common target for many European governments at various levels. Due to the economic crisis between 2012 and 2014, achieving this target was challenging. Moving forward, Catalonia will need to put in extra effort to meet it. However, this commitment will not impact the region’s industrial or economic policies as it is considered an additional aspect of the government’s work.

Why is Catalonia an attractive destination for doing business?

Catalonia’s business opportunities are increasingly tied to its position within the European Union through Spain, which gives it access to a market of 450 million people. Offering direct access to one of the largest economic and consumer regions globally is a major advantage. Over recent years, Catalonia has built a strong startup ecosystem, especially in Barcelona, which is now a leading hub for startups in Southern Europe. Investing in Catalonia means tapping into this dynamic network of innovation and entrepreneurship. Additionally, Catalonia has a robust strategy for attracting investment, with a highly developed industrial base that positions it as one of the most advanced industrial landscapes in Europe. Catalonia also houses a skilled workforce and is supported by a vast network of universities, research centers and scientific institutions, including the Barcelona Supercomputing Center. This combination of a modern industrial environment, strong academic infrastructure and scientific capabilities creates a highly favorable business climate. Beyond these economic factors, the quality of life in Barcelona adds to the region’s appeal, making it an attractive location for businesses and individuals looking for both professional and personal growth.

As one of Europe’s most dynamic regions, Catalonia is poised to play a leading role in the anticipated expansion of the European economy in the coming years. Spain stands out in 2024 as one of the countries with the most robust and sustained economic growth in the world. Catalonia’s contributions are instrumental and add an extra 3.8% to the national GDP. With Catalonia now enjoying stability, the focus has shifted to implementing transformative policies and creating a future of growth and innovation. Additionally, Catalonia’s emphasis on local production is driving job creation and further solidifying its position as a regional leader in economic development and innovation.

How does the region stand out in terms of its technological capabilities?

Catalonia is leveraging public, private and mixed investments to stay at the forefront of innovation by maximizing European Commission funds dedicated to advanced technologies. Significant efforts are being made in microchip design alongside promising developments in photonic technology, the next evolution beyond traditional microchips. The European Commission recently announced plans for seven artificial intelligence factories, with one to be established in Barcelona. Catalonia also houses a strong automotive industry, with Barcelona serving as a key production hub for Volkswagen’s SEAT, one of Europe’s major car brands. Additionally, a new automotive company recently chose Barcelona as its base, reinforcing the region’s position as a leader in this sector. These initiatives place Catalonia in a strong position across various technological and industrial fields.

How significant are political and industrial ties between Catalonia and the USA?

The United States has maintained a strong and beneficial presence in Catalonia. However, the opportunities ahead are even more promising. We respect the electoral choices of the American people and are committed to maintaining strong relationships; Catalonia aims to strengthen its ties with the United States and attract even more investment, regardless of changes in the US administration. The USA is a top investor in the region; more than 20% of Catalonia’s foreign investment currently comes from the USA, including 28% of its tech investment. While these figures are impressive, there exists potential for further growth, and expanding this relationship is a key focus for the government. To support this, Catalonia has enhanced its presence in the USA through trade offices in Washington D.C., New York, Miami, Austin and Silicon Valley. It has also installed an institutional delegation in Washington D.C. to oversee relations with both the USA and Canada. Over the past decade, Catalonia has signed memoranda of understanding with California and Massachusetts in areas such as technological research, industrial renewal, renewable energy, tourism, medical research and pharmaceuticals, the latter being one of Catalonia’s largest industrial sectors.

Beyond the USA, what is Catalonia doing to promote itself on the world stage as a center of excellence?

In today’s globalized world, it is essential to establish a presence in as many regions as possible. However, priorities must be chosen carefully. As part of the EU, Catalonia benefits from numerous opportunities within Europe and trade agreements with countries like Japan and South Korea, with the latter offering significant untapped potential. China is another critical focus; while already well-established in Europe and Catalonia, there exists room for a more balanced and proactive relationship. Latin America also holds great promise as a major market for Catalan companies, which are already active in countries like Argentina, Chile, Brazil and Mexico. There is still much more to achieve, and expanding these ties will be a key focus in the coming years.

What are your top priorities as the new Minister of the European Union and Foreign Action of Catalonia?

Our primary goal is to maintain a strong, active and influential presence in Brussels and other key EU capitals to ensure Catalonia’s voice is heard across European institutions. By prioritizing this engagement, we can address a wide range of pressing issues tied to the real needs of Catalan citizens. A critical area is housing, a challenge not only for Catalonia and Spain but for many EU member states. For the first time, the European Commission is set to develop a unified European housing policy. It is crucial that Catalonia actively participates in shaping this initiative and leverages opportunities it creates to address local housing challenges.

Another major priority is the reindustrialization of Europe, which is crucial for enhancing strategic autonomy. This goes beyond defense to encompass secure and sustainable energy access. Catalonia and Spain need significantly improved energy infrastructure, particularly through better connections with France and — by extension — the rest of Europe. This involves large-scale infrastructure projects in electricity and hydrogen, the latter representing the cutting edge of modern energy solutions. Catalonia also seeks to advance autonomy in accessing critical raw materials and rare minerals vital for technological innovation. This aligns with European Commission initiatives that will allocate significant funding to regional and national governments capable of presenting impactful projects in these areas. Catalonia must be strategically positioned to maximize these opportunities for the benefit of its citizens.

Environmental sustainability and combating climate change also remain key priorities, with a focus on aligning these efforts to create jobs and boost the local GDP. By integrating environmental initiatives into broader economic strategies, Catalonia can ensure meaningful progress while fostering economic resilience. In the coming five years, Catalonia aims to align its efforts seamlessly with both European and Spanish priorities. This strategic alignment, coupled with smart and citizen-focused policies, will drive sustainable growth and prosperity across the region.