Spain loses 20% of its economy if Catalonia splits

Catalonia: What you need to know

Would going it alone work for Catalonia?

The Spanish region is holding an independence referendum on Sunday with major economic implications for the country — and Europe.

‘; var storytext = document.getElementById(‘storytext’); var heightToSkip = 0; function resetValues() { totalHeight = 0; targetChildElement = null; }
// Check if story is in the blacklist of articles to remove smartassets // [2017.07.27] Results of a one-off request from r.barbieri if(BLACKLIST[location.pathname] === true) { return } if(storytext == null) { console.log(“Error finding storytext element for SA embed”); return; } for ( i = 0; i 0) { heightToSkip -= storytext.childNodes[i].clientHeight; resetValues(); } else if(heightToSkip minHeight && targetChildElement != null) { //console.log(“total height = ” + totalHeight); //console.log(“childNode = ” + targetChildElement); storytext.childNodes[targetChildElement].insertAdjacentHTML(‘afterend’, smartAssetDiv); smartasset = document.getElementById(‘smartasset-article’); smartasset.style.float = ‘left’; // allows module to have text float to right smartasset.style.marginRight =’20px’; smartasset.style.marginBottom =’25px’; //console.log(storytext.childNodes[targetChildElement]); //SMARTASSET.setDivIndex(targetChildElement); SMARTASSET.setSmartAssetScript(); /* bail out since we’re done */ break; } } /* div with id=”smartassetcontainer”. Sanity check to only embed once */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].id !== “undefined” && storytext.childNodes[i].id === “smartassetcontainer”) { break; } /* div with id=”ie_column” */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].id !== “undefined” && storytext.childNodes[i].id === “ie_column”) { resetValues(); } /* embeds from twitter, facebook, youtube */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].classList.contains(’embed’)) { resetValues(); } /* cnn video player */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].classList.contains(‘cnnplayer’)) { resetValues(); } /* images */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘img’) { resetValues(); } /* images stored in figure tags */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘figure’) { if(storytext.childNodes[i].clientWidth

The vote, which is fiercely opposed by Spain’s central government, comes as the country emerges from nearly a decade of economic trauma. Catalonia is its most economically productive region.

Here’s what’s at stake:

Richer on their own?

Catalonia accounts for nearly a fifth of Spain’s economy, and leads all regions in producing 25% of the country’s exports.

It contributes much more in taxes (21% of the country’s total) than it gets back from the government.

Independence supporters have seized on the imbalance, arguing that stopping transfers to Madrid would turn Catalonia’s budget deficit into a surplus.

Catalonia has a proven record of attracting investment, with nearly a third of all foreign companies in Spain choosing the regional capital of Barcelona as their base.

Volkswagen (VLKAY) and Nissan (NSANF), for example, both have plants near Barcelona.

Related: Catalonia on collision course as banned referendum nears

Big risks

But there are many unanswered questions — including continued membership in the European Union.

If Catalonia was forced to independently apply for EU membership, it would have to convince all of the bloc’s current members to agree — including Spain.

“We currently see no practical way for Catalonia to become an independent country within the EU, as most supporters of independence want,” economists at Berenberg Bank wrote in a research note.

Dropping out of bloc would likely raise the cost of exporting goods produced in Catalonia to EU members and other nations.

“It would join the small list of countries that are not World Trade Organization members, meaning it would face significant trade barriers,” said Stephen Brown, an economist at Capital Economics.

Barcelona: The jewel in Spain’s economy

Brown said the move would increase the price of imported goods in Catalonia and result in job losses.

Independence could also make it more expensive for the region’s government to borrow. Credit ratings agencies Moody’s and S&P both downgraded Catalonia’s debt rating in 2016.

The region could continue using the euro as its currency, but would not have a seat at the European Central Bank.

What about Spain?

Spain’s highest court has banned the referendum, calling it unconstitutional. But the separatist regional government is pushing ahead with the vote.

A split would leave a hole in Spain’s finances and dramatically increase uncertainty.

If Catalonia declares independence unilaterally, it might also refuse to take on its share of the national debt.

“While there does not appear to have been any serious effect on the wider Spanish economy so far, it is likely that business and consumer confidence would deteriorate if Catalonia were to secede,” Brown said.

What’s next

The buzzword for investors is uncertainty.

“As with Brexit, we believe that any Catalexit would plunge the region into a long period of uncertainty and would most probably be negative for the private sector,” ING economist Geoffrey Minne wrote in a research note.

Kathleen Brooks, the research director at City Index, said a referendum win for the separatists could cause the euro to decline by as much as 5%.

However, even a decisive “yes” vote is unlikely to result in Madrid or the EU recognizing Catalonia as “independent.”

“The Catalan government will instead attempt to use a positive referendum result to increase its leverage in future negotiations with the Spanish government,” said Laurence Allan of IHS Markit.

CNNMoney (London) First published September 29, 2017: 11:15 AM ET

The following two tabs change content below.
Nino Plevnik
I am in the Internet marketing area for some time now. I mostly deal with Affiliate Marketing and Domain Flipping. It took me a while until I figured it out. Now I want to transfer my knowledge to beginners, so they can start earn money online as quickly (and painlessly) as possible.
Nino Plevnik
About Nino Plevnik 83 Articles
I am in the Internet marketing area for some time now. I mostly deal with Affiliate Marketing and Domain Flipping. It took me a while until I figured it out. Now I want to transfer my knowledge to beginners, so they can start earn money online as quickly (and painlessly) as possible.

65 Comments

  1. What’s Happening i am new to this, I stumbled upon this I’ve discovered It absolutely useful and it has aided me out loads. I am hoping to contribute & aid other users like its helped me. Great job.

  2. My programmer is trying to convince me to move to .net from PHP. I have always disliked the idea because of the expenses. But he’s tryiong none the less. I’ve been using Movable-type on a number of websites for about a year and am nervous about switching to another platform. I have heard excellent things about blogengine.net. Is there a way I can import all my wordpress posts into it? Any help would be greatly appreciated!

  3. I and also my pals were looking at the nice thoughts on your website and the sudden I had a terrible suspicion I never thanked you for those secrets. All of the young boys came warmed to study them and now have in truth been taking advantage of these things. We appreciate you genuinely very considerate as well as for considering such essential topics millions of individuals are really desperate to understand about. Our honest regret for not expressing gratitude to sooner.

  4. I like what you guys are up too. Such clever work and reporting! Carry on the superb works guys I have incorporated you guys to my blogroll. I think it will improve the value of my website

  5. Hello there! This post couldn’t be written any better! Going through this article reminds me of my previous roommate! He continually kept preaching about this. I will forward this article to him. Fairly certain he’s going to have a good read. Many thanks for sharing!

  6. It is perfect time to make some plans for the long run and it is time to be happy. I have learn this publish and if I may just I wish to recommend you few fascinating things or advice. Maybe you could write next articles relating to this article. I want to read more things approximately it!

  7. Do you have a spam issue on this blog; I also am a blogger, and I was wanting to know your situation; we have created some nice procedures and we are looking to swap techniques with others, why not shoot me an e-mail if interested.

  8. My husband and i have been glad when Louis managed to finish off his preliminary research with the precious recommendations he obtained when using the web site. It’s not at all simplistic to simply choose to be giving for free procedures people today may have been selling. We really figure out we’ve got the blog owner to be grateful to because of that. All the explanations you have made, the simple blog navigation, the relationships you will aid to promote it is many excellent, and it is leading our son in addition to our family consider that that content is enjoyable, and that is particularly serious. Thank you for the whole thing!

  9. Sorry for the huge review, but I’m really loving the new Zune, and hope this, as well as the excellent reviews some other people have written, will help you decide if it’s the right choice for you.

  10. you’re truly a just right webmaster. The web site loading pace is amazing. It sort of feels that you are doing any unique trick. Moreover, The contents are masterwork. you have performed a wonderful activity in this subject!

  11. Thank you, I have recently been searching for info approximately this topic for ages and yours is the greatest I have discovered so far. However, what about the bottom line?Are you positive concerning the supply?

  12. Do you have a spam issue on this blog; I also am a blogger, and I was wondering your situation; many of us have created some nice practices and we are looking to swap methods with other folks, please shoot me an email if interested.

  13. I’m not sure where you’re getting your info, but good topic. I needs to spend some time learning more or understanding more. Thanks for fantastic info I was looking for this info for my mission.

  14. I just want to mention I am very new to weblog and really enjoyed your web blog. More than likely I’m planning to bookmark your blog . You absolutely come with perfect article content. Thanks a lot for revealing your website page.

  15. Its like you read my mind! You appear to know so much about this, like you wrote the book in it or something. I think that you could do with a few pics to drive the message home a bit, but instead of that, this is great blog. A fantastic read. I will definitely be back.

  16. Wonderful blog! I found it while searching on Yahoo News. Do you have any suggestions on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Thanks

  17. Hi there! Do you know if they make any plugins to help with Search Engine Optimization? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good success. If you know of any please share. Thanks!

  18. I was recommended this website via my cousin. I am no longer positive whether this put up is written by way of him as nobody else recognize such distinct about my problem. You are amazing! Thanks!

  19. I have been exploring for a bit for any high quality articles or weblog posts in this kind of area . Exploring in Yahoo I at last stumbled upon this website. Reading this info So i’m glad to express that I have an incredibly excellent uncanny feeling I found out exactly what I needed. I so much surely will make certain to don?t put out of your mind this website and provides it a look on a continuing basis.

  20. I needed to create you one tiny observation to be able to say thanks a lot the moment again relating to the gorgeous solutions you’ve shown on this page. It’s simply particularly open-handed with you to deliver without restraint exactly what a number of us could have made available for an ebook in making some bucks for their own end, mostly now that you might well have tried it in the event you considered necessary. The secrets in addition worked to become fantastic way to realize that many people have the identical keenness much like my own to realize great deal more in respect of this issue. I think there are thousands of more enjoyable occasions ahead for many who looked at your website.

  21. An outstanding share! I have just forwarded this onto a friend who was doing a little research on this. And he actually bought me lunch because I discovered it for him… lol. So let me reword this…. Thanks for the meal!! But yeah, thanx for spending some time to discuss this issue here on your internet site.

  22. Whats Taking place i am new to this, I stumbled upon this I have discovered It absolutely helpful and it has helped me out loads. I hope to contribute & help different customers like its helped me. Good job.

  23. It’s a pity you don’t have a donate button! I’d without a doubt donate to this brilliant blog! I guess for now i’ll settle for bookmarking and adding your RSS feed to my Google account. I look forward to brand new updates and will talk about this blog with my Facebook group. Chat soon!

  24. I think this is one of the most significant info for me. And i am glad reading your article. But should remark on few general things, The web site style is great, the articles is really great : D. Good job, cheers

  25. hi!,I like your writing very a lot! proportion we keep up a correspondence extra about your article on AOL? I need an expert on this house to resolve my problem. May be that is you! Taking a look ahead to see you.

  26. Tip! It could take some time before a whole new concrete floor entirely dry. For the laminate, the humidity ought not to exceed 3 %. Does one doubt? Rent a hygrometer using a larger rental tools.

  27. Hello! I just wanted to ask if you ever have any problems with hackers? My last blog (wordpress) was hacked and I ended up losing a few months of hard work due to no data backup. Do you have any solutions to prevent hackers?

  28. There may be a viewpoint in which Viagra can help mainly those men who certainly obtain severe ailments. Next time you have some Viagra sitting around and for some reason you don’t need them anymore, don’t flush them down the toilet. Of course, this is not all that unusual, as all medications cause adverse effects if a person takes more than the recommended or prescribed dosage.

  29. The amount of the loan could be deposited in towards the checking account within few hours super real before applying to get a unsecured guarantor loan, take into account requesting your pals and relationships that will assist you to.

  30. I was recommended thijs website by mezns of my cousin. I’m now not sure whether this publish is written by means of him as nobody else recognise such designated about my difficulty. You are wonderful! Thank you!

  31. I truly love your blog.. Pleasant colors & theme. Did you build this site yourself? Please reply back as I’m hoping to create my own blog and would love to learn where you got this from or exactly what the theme is named. Appreciate it!

  32. I’m extremely impressed together with your writing abilities and also with the layout for your weblog. Is this a paid subject matter or did you customize it yourself? Anyway stay up the nice high quality writing, it’s uncommon to see a nice weblog like this one nowadays..

  33. Appreciating the persistence you put into your blog and in depth information you offer.

    It’s good to come across a blog every once in a while
    that isn’t the same out of date rehashed material. Fantastic read!
    I’ve saved your site and I’m including your RSS feeds to my Google account.

Leave a Reply

Your email address will not be published.


*