Nick Ferrari Pinpoints Why The EU Backs Spain In The Catalonia Crisis

Marie Harrington
October 6, 2017

Map of the Iberian peninsula that includes Spain and Portugal.

Catalonia is the country's richest region and home to thousands of domestic and foreign companies.

Most recently, Spain's Constitutional Court suspended Catalonia's referendum law, holding that an independence vote would only be legal following an amendment of the Spanish Constitution - an option that has no support from the ruling parties in Madrid.

Spain's Constitutional Court justified the ban by calling the move to declare independence "a breach of the constitution", as have other Spanish government officials including King Felipe VI. "We know that there may be disbarments, arrests".

"Even though our base case assumption remains that Catalan independence (even if unilaterally declared) will not happen, we suspect things might still get worse before they get better, and target a return of the 10-year Spain/Germany (yield spread) to back above 140 bps", analysts at ING said in a note.

The Catalan government says 2.26 million people of the registered 5.3 million cast their ballots, with almost 90 percent voted for an independent state.

Organisers of Sunday's vote put the turnout at 42 percent with 2.2 million people taking part.

The organisers said 90 per cent voted for independence, but have not published the final results. We will use the entire force of the law.

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Spain's fifth-largest bank, Sabadell, will consider on Thursday whether to shift its headquarters away from Catalonia in the first major sign that the wealthy region's push for independence from Spain could scare away big business.

Puigdemon accused King Felipe of Spain of standing in the way of mediation, which he says would have brought the country out of its current crisis. The king's stance is widely seen as being nearly identical with the hardline position adopted by the Popular Party, the right-wing ruling party of Spain.

Voters in Catalonia, a region with its own distinct language and culture, approved an independence referendum on Sunday. The Catalan president vowed to move forward with a formal declaration of independence in the coming days.

Ireland's prime minister Leo Varadkar has said his government respects Spain's constitution but he also described the violence as "disproportionate and counterproductive".

Until now, leaders across Europe have been mute about the Catalan independence bid.

In another video clip, the organizers paid tribute to the people who were injured in violent clashes with the police at polling stations across Catalonia.

"People here have completely disconnected from the Spanish state", said Joan Coma, a councilor for the Popular Unity Candidacy (CUP), a small anti-capitalist party which has an outsized influence on Puigdemont's Catalan government. Political observers were quick to point out the double standards involved in the European elite invoking these principles.

If negotiations are still to come, however, it is not clear who will mediate this political crisis.

Other reports by TheSundaySentinel

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