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).