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In the aftermath of last month’s Brexit vote, there was an outpouring of concern in Europe that the British decision would embolden similar separatist movements across the continent. Earlier Wednesday, this is precisely what happened when Catalan nationalists voted to approve a plan to secede from Spain, defying the nation’s Constitutional Court and challenging acting Prime Minister Mariano Rajoy, who is currently in political limbo as he struggles to form a government.
The decision was approved by 72 regional MPs out of 135. Ten MPs from the CSP group linked to Podemos, Partido Popular and Ciudadanos walked out of the assembly and the Socialists did not vote. A recent poll shows that 48% of the Catalan population currently supports independence compared with 43% against it.
For those unaware, a fifth of Spain’s GDP is voting on whether to secede from the country on Sunday. Here is everything you need to know about the Catalan black swan.
– Spain Defense Minister Warns Army May Intervene Unless “Catalonia Obeys The Rules” (ZeroHedge, Sep 9, 2015):
With Spain’s Catalan region on the verge of electing pro-independence parties and seeking autonomy from central rule, the government (clearly worried) has ramped up the rhetoric on what consequences lie ahead. In a rather stunning outburst for a supposed democracy, CNA reports, the Spanish Defence Minister, Pedro Morenés, assured that the army won’t act in Catalonia as long as “everybody fulfills their duty.” The Catalan minister for the presidency exclaimed Morenes statement was “out of this world,” and could only be made by “someone who is afraid of democracy.” The army will “enforce the Constitution,” Morenes concludes, unless “members strictly obey the rules.” As one pro-independence minister opined, “threatening and trying to intimidate means that you are only left with stupidity.”
– Spot The Total Logic Fail (ZeroHedge, Sep 29, 2014):
It appears the leadership in Spain has reached its panic-point. Following Catalonia’s President Artur Mas signing of a decree calling for an ultimately democratic referendum on independence for the region, Spanish Prime Minister Rajoy uttered this mind-numbing phrase:
- CATALAN VOTE PROFOUNDLY ANTI-DEMOCRATIC, RAJOY SAYS
It appears Rajoy’s perspective on democracy and the will of the people is a little different as the situation has become serious enough that he has gone full-Juncker.
“Catalonia wants to speak,” he said after signing on Saturday. “Wants to be heard. Wants to vote. Now is the right time and we have the right legal framework to do so.”
The referendum’s two questions
– Catalonia president orders independence referendum on Nov. 9 (RT, Sep 27, 2014):
The president of Catalonia, Artur Mas, has signed a decree calling an independence referendum for Nov. 9. The secessionist drive of the Spanish region has been rebuked by Madrid, which vowed to block the vote.
Spanish Prime Minister Mariano Rajoy has called a government meeting Monday that is expected to provide a legal response to Barcelona’s announcement. Madrid plans to challenge the vote in the constitutional court.
– Spanish Military Threatens Treason As Catalonia Seeks Secession Referendum (ZeroHedge, Sep 24, 2012)
“Do not play with the feelings of the Catalans” is the totally unveiled threat after Catalonia’s beggars-can-be-choosers demand for an unconditional bailout fell on deaf ears. The traditionally separatist-minded province has decided, according to ANSAmed, has decided to pull a Greece – and escalate with a move to secession. A resolution, on the right of the Catalan people to cut off ties with the Spanish state, will be voted on Thursday by the regional parliament.
This statement of “the will of Catalan people to vote on the bond with the State of Spain” opens the way for forthcoming elections on November 25 to become a referendum on the sovereignty of Catalonia.
The Spanish military are not taking this lying down with the counter-threat that these ‘separatists’ and their ‘inappropriate and unacceptable’ threat to break-up Spain shall be, according to El Economista, charged with high treason. We are sure Draghi has a ‘grand plan’ for this.
– Spain’s Catalonia Region Demands €5 Billion Bailout, Will Not Tolerate Conditions(ZeroHedge, Aug 28, 2012):
Beggars can once again be choosers. In other news, non-news (the Catalan bailout was announced at least two times before) is news again, and magically drives the amnesiac market all over again.From Cinco Dias, courtesy of the always amusing google translate, which makes any news, no matter how tragic, quite hilarious without fail:
Catalonia 5,023,000 calls but will not accept the State Policies
The Catalan government today applied to join the Spanish Government Autonomous Liquidity Fund, which will borrow EUR 5.023 million, but has warned he will not accept “political conditions” to provide some resources “that are of the Catalans”.
And Spain is too big to bail out (!), according to Nouriel Roubini.
– It Begins: Spanish Region Of Catalonia Demands A Bailout (ZeroHedge, May 25, 2012):
Yesterday we mocked the fact that the Bankia’s bailout costs are doubling with each passing day. Today, things just got “Messi-er”:
- SPAIN’S CATALONIA REGION NEEDS GOVERNMENT HELP, RUNNING OUT OF DEBT FINANCING OPTIONS-CATALAN PRESIDENT – RTRS
So… if broke Bankia can rehypothecate Ronaldo, can Barcelona demand delivery of Messi and pledge him as ECB collateral too? Or was he nationalized by the government in retaliation for that whole “Argentina” thing?
Spain’s wealthiest autonomous region, Catalonia, needs financing help from the central government because it is running out of options for refinancing debt this year, Catalan President Artur Mas said on Friday.
“We don’t care how they do it, but we need to make payments at the end of the month. Your economy can’t recover if you can’t pay your bills,” Mas told a group of reporters from foreign media.
The debt burden of Spain’s 17 highly devolved regions, and rising bad loans at the country’s banks, are both at the heart of the euro zone debt crisis because investors are concerned they could strain finances so much that Spain, the currency bloc’s fourth biggest economy, will need an international bailout.