Catalonia: A referendum on independence? - The Economist. RISING tension between Madrid and Catalonia reached a new peak yesterday with the announcement by the Catalan president, Artur Mas, that he plans to hold an independence referendum on November 9th next year. Flanked by leaders of parties that hold two-thirds of seats in the region's parliament, Mr Mas launched the biggest challenge to Spain's internal structure in recent history.
Catalonia's growing calls for independence add to Spain's worsening euro crisis woes
The New York Times: Spain’s Leader Fails to Reach Deal With Catalonia. “The people and society of Catalonia are on the move, as we have seen on Sept. 11, and not willing to accept that our future will be gray when it could be more brilliant,” Mr. Mas said at a news conference here. Just as Mr. Rajoy’s government finds itself on the front lines of the euro crisis, Catalonia, which accounts for almost a fifth of Spain’s economic output, has moved to the fore of Mr. Rajoy’s domestic…
Spanish Government: Independent Catalonia to "roam across space […] excluded from the EU for the centuries of the centuries" - CNA, 10 March 2014. The Spanish Foreign Affairs Minister, José Manuel García-Margallo, stated that a unilateral declaration of independence would condemn Catalonia "to roam across space" and that it would be "excluded from the European Union for the centuries of the centuries".
Madrid asks Catalonia to pay 6,057 euros for every pupil being privately educated in Spanish - ACN, 25 June 2014. The Spanish government is asking the Catalan Government to pay 6,057 euros annually for every pupil that enrols in private education in Spanish if there is no such an offer in the public system. Catalan is the main language of instruction in schools in Catalonia, but this has caused a conflict between the PP government and the Catalan executive that is now coming to a head.
Catalonia posted a fiscal deficit of 7.7% of its GDP in 2011, equivalent to €2,055 per citizen - catalannewsagency.com, 12 June 2014. The Catalan Government issued on Thursday its own calculation of the so-called fiscal balances with the latest data available, which is from 2011. In that year, Catalans funded services and infrastructure in the rest of Spain for €15.01 billion, equivalent to €2,055 per citizen or 7.7% of Catalonia's GDP, using the monetary flow formula.
Why the Catalonia Election Results Should Worry Markets
CNBC: Why the Catalonia Election Results Should Worry Markets. “This election result hasn’t made things easier. What we’ve seen is a radicalization of the political stage,” Edward Hugh, one of the few economists to sound the alarm about the euro zone’s debt crisis, told CNBC.
Spain on Track for Major Crisis in 2014 | The American Interest. "Blackmail Madrid as long as possible, and keep the referendum threat real: This is a smart strategy and one that will be hard to beat. Madrid is now backed into a corner: If it squeezes Catalonia, the prospect of secession increases, investors flee all of Spain, and the euro itself comes under pressure."