Spain Vows Catalonia Will Face ‘Brutal Impoverishment’ If It Leaves

Wiki
image_pdfimage_print
Catalonia, which accounts for a fifth of Spain’s economy and is roughly the size of Belgium, will hold an independence referendum on October 1, which Madrid and Spanish courts have declared illegal. The pro-secession movement says Catalonia pays $19 billion more in taxes to Madrid each year than it gets back in investments and services, but this would end if the region split from Spain.

Catalonia would suffer “brutal” impoverishment if it splits from Spain, with a deep plunge in its economic output, Spain’s economy minister warned Monday ahead of a disputed independence referendum in the region.

“The general impoverishment of the society would be brutal. GDP could fall between 25 and 30 percent and unemployment double,” Economy Minister Luis de Guindos said in an interview with radio Cope.

An independent Catalonia would find itself outside of the eurozone so 75 percent of its products would be slapped with tarifs, banks would have to relocate, and the region would have to set up its own currency, he added.

“The independence of Catalonia would be absolutely irrational from an economic point of view,” the minister said.

Catalonia, which accounts for a fifth of Spain’s economy and is roughly the size of Belgium, is slated to hold an independence referendum on October 1, which Madrid and Spanish courts have declared illegal.

The referendum has not had an impact on the economy because financial markets do not think Catalan independence is a “minimally viable and acceptable scenario”, the economy minister said.

Catalonia’s pro-secession regional government argues that an independent Catalonia would be able to decide its own fiscal policy and investments, which would boost its GDP.

It says Catalonia currently pays billions more in taxes to Madrid each year than it gets back in investments and services but this would end if the region split from Spain.

The Catalan government estimates it pays 16 billion euros ($19 billion) more to Madrid than it gets back, or about 8.0 percent of it the region’s GDP.

Read full article here…

Related Post

Visit our Classified ads.

Check out our Classified ads at the bottom of this page.

Recent stories & commentary

Money

The 147 Companies that Control Everything

February 22, 2019 Forbes 0

Three systems theorists used a database listing 37 million companies and investors worldwide to map their economic power. The researchers discovered that global corporate control has a distinct bow-tie shape, with a dominant core of 147 firms, mostly banks, that control everything.

Freedom

In America, Hate Hoaxes Far Exceed Actual Hate Crimes

February 20, 2019 Fox News 1

Tucker Carlson reviews the long record of Hate Hoaxes in America. Collectivist leaders on both the left and the right want to weaken the country with disunity and violence because divided populations are easier to manipulate and rule.

Classifieds

For classified advertising rates and terms, click here. The appearance of ads on this site does not signify endorsement by the publisher. We do not attempt to verify the accuracy of statements made therein or vouch for the integrity of advertisers. However, we will investigate complaints from readers and remove any message we find to be misleading or that promotes anything fraudulent, illegal, or unethical.

Leave a Reply

avatar
  Subscribe  
Notify of