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

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.

For Sale

Ten Days at Jekyll Island, a novel by Patrea Patrick, tells the true story of a secret meeting held in November of 1910 on a privately owned resort island, the outcome of which drastically changed the world. It was at this meeting that a banking cartel was forged; a cartel that, three years later, would be issued a government charter to do business as The United States Federal Reserve System. You will discover why secrecy was essential. Based on historical documentation from The Creature from Jekyll Island by G. Edward Griffin. (More)

 


Offline is a documentary on the inevitability of the Earth being slammed by a mega solar flare – not the common type that interrupts communications and creates a light show in the Northern skies – but the big brothers thousands of times more powerful. These monsters deliver enough energy to blow apart the master transformers that supply the planet’s energy grids. When that happens, the lights go out for longer than anyone wants to think about. These X-Class solar storms hit the Earth every 150 years, on average. The last one arrived 156 years ago. We are overdue (More)

 


Leave a Reply

avatar
  Subscribe  
Notify of