Banks take fright after Catalan crisis gives rise to talk of civil war
THE EU’S budget commissioner yesterday warned of the risk of “civil war” in Catalonia as fears grew over a looming independence declaration and major banks prepared to relocate their headquarters.
As another day passed with no sign of dialogue and pro-independence parties pushing for the declaration of a Catalan republic as early as Monday, Günther Oettinger, the budget commissioner, urged the two sides to talk.
“The situation is very, very disturbing. A civil war is planned in the middle of Europe,” Mr Oettinger said in Munich. “One can only hope that a conversation will be made between Madrid and Barcelona soon.” He added that the EU could only mediate talks “if asked”.
As nerves grew that an independence declaration could be about to plunge Catalonia into the unknown, Banco Sabadell, the fifth-largest banking group in Spain, announced it was moving its headquarters to Alicante.
Caixabank too was looking at options, the Spanish daily El Mundo reported, including a relocation to the Balearic Islands if a declaration tipped Catalonia into a state of legal chaos. Catalan Occidente, the insurer, also said it was ready to take “all necessary decisions” as “events developed”.
Madrid appeared to be trying to facilitate an exodus by preparing a decree to make it easier for companies to move their legal base out of Catalonia without lengthy approval processes. The decree is expected to be approved today.
Luis de Guindos, the Spanish economy minister, pointed to the bank moves as a measure of instability. “This is a clear indication of how insane the regional government of Catalonia is,” he told Bloomberg News.
There was uncertainty yesterday as to when a declaration of independence might come. The Catalan parliament is to meet on Monday and the CUP, the junior partner in the regional government, is pushing for it to be made then.
Yesterday Spain’s constitutional court ordered that session suspended – though it is unlikely to be heeded. But Carles Puigdemont, the Catalan president, notably omitted to address the issue in a Wednesday speech, while the head of the parliament said she could not confirm a Monday declaration.
Hopes of talks were dampened by Mariano Rajoy, the Spanish prime minister, who told the news agency EFE that the solution to the crisis was “the swift return to legality” and the affirmation there would be no declaration of independence.
The Spanish stock exchange on Wednesday saw its biggest fall since Brexit and industry is sounding the alarm. But Xavier Adam, a Catalan investor based in the UK, told The Daily Telegraph that he is cancelling his projects in Spain in protest at Madrid’s “medieval” response to the banned vote.