Ainslie Noble via Atlantic Sentinel | Catalonia’s independence referendum has aroused separatist sentiment north of the border, where a Catalan-speaking minority has long been content to live under French rule.
From October 2 to November 24, 2.773 companies have transferred their headquarters (HQ) from Catalonia to other regions in Spain, according to figures from the College of Mercantile Registers in Spain.
US companies’ profits have exceeded forecasts by 4.6%, the European ones by 2% and Japanese firms by 6.7%. This has fuelled a strong rally in the stock markets in just a few weeks. But is there room for the markets to rise further?
With regard to Spain’s debt, there has been a Keynesian policy in place, of ECB monetary expansion and the expansion of government debt, call it what you like. And this policy has allowed Spain to grow at an annual rate of 3% in three years.
S&P published a specific note on Spain economy on 31/10 where it states that the recent events in Catalonia should not have any immediate impact on its rating nor its outlook (BBB+/Positive). At the same time, Moody’s published a note on Spain which is more cautious about the risks of implementing Article 155.
From 15:25 last Friday afternoon, when the Catalan Parliament made its unilateral declaration of independence, events have speeded up. Three hours after the solemn, but sad proclamation, the Republic of Catalonia disappeared into thin air. Mariano Rajoy dissolved the regional parliament and fired Carles Puigdemont’s government by implementing Article 155 of the Spanish Constitution in the Senate. And the biggest surprise: a call for elections on December 21.
Whether it’s the initiative of the Catalan or Spanish government, Catalonia is this week heading for elections at the beginning of 2018. Some will say the elections are constituent towards obtaining independence and the new Republic of Catalonia. Others will hold the view that they are autonomous elections under the protection of the 1978 Spanish Constitution. In fact what they will be are elections to clarify the current real political map in Catalonia.
For the moment, Russia considers what’s happening in Catalonia as an internal issue and the country’s television channels are focusing on the violence in the region, without getting to the political issue itself. For the time being. Except if the problem stops being a domestic one and – for whatever reason- becomes an international one.
The next chapter of the “Catalan saga” was revealed today. Prime Minister Mariano Rajoy has now warned that on Saturday article 155 of the Constitution will be implemented to suspend Catalonia’s autonomy. And amid this endless craziness, Puigdemont says that if this finally happens, the declaration of independence will be declared.
Catalan leader Carles Puigdemont had until 10 am on Monday 16 October to clarify whether he has declared independence or not. As was widely expected, he answered PM Mariano Rajoy in an ambiguous way, with neither a clear yes nor a no. He has until Thursday at 10 am to avoid the government applying article 155 of the Constitution.