The fear of Catalonia’s independence

Spain is the fourth largest economy in the eurozone and the fifth largest country in European Union. The average GDP for the country amounts US$1.2 trillion while among the 17 autonomous communities, Catalonia contributes about 20 per cent of the country’s growth.

In Catalonia, this community – therwise known as state or province in other countries – comprises 7.5 million population compared to an estimated 46 million on a countrywide record.

This community region spans the Northeast region of Spain with coastal line beach resorts on Coasta Brava and the highly appreciated Barcelona as the capital city likened by many tourists.

It would take no wisdom to comprehend that the Catalan government is one of the most efficient and richest entity while compared to the other 16 communities.

In term of economic growth, Catalonia pays the most taxes to central Government of Spain. This has become the spark of division in the autonomous community to fight for independence.

On October 9, the Catalan government ran a referendum to become independent amidst strong objection by central government. Sources concluded that 90 per cent votes have favoured for it despite no official result has yet been announced. The euro currency and stock markets in European region were poised for panic in case of undermining danger of the national split.

The Spanish central Government declared the referendum to be “clearly illegal”. Central leaders have warned of two possible actions that could be applicable if the Catalan government announced its independence.

First, the enactment of article 155 could remove the autonomy status of Catalonia and render all policies of the community Government to be invalid.

Secondly, the implement of martial law or state of emergency in Catalonia. By doing so, there may be bloodshed through military violence that will take some leaders into detention.

On a larger scale of observation, European Union (EU) leaders have been worried of the Spain’s rout because the unwelcome independence of Catalonia could lead to the next exit of EU bloc.

After UK voted to exit from the EU bloc, this hairline crack could lead to a huge irreparable division among European Nations if the unity is jeopardised.

Following the dormant behaviour of Catalonia, European stocks began to climb while the euro currency returned to a twoweek high during mid-week.

American and European stock indexes have been edging higher while the global watchers are waiting for US Federal Reserve to unfold the trimming this month.

More excitement in market will be revealed towards end of this month. Stay alert.