The Declaration of independence for Catalonia is not profitable, I think in Spain

© AFP 2017 / Pau Waypoetic protest in front of the Department of Economics of Catalonia in Barcelona. 20 September 2017The Declaration of independence for Catalonia is not profitable, I think in Spain© AFP 2017 / Pau Barrena

The establishment of an independent state will turn to Catalonia’s huge economic losses, the authorities of the Autonomous communities, says the opposite, or do wrong, or deliberately misled people in the region, saying the Spanish authorities and entrepreneurs.

The government of Catalonia is going to hold the 1st of October, the referendum on independence, which does not recognize the Spanish government. Spain’s constitutional court suspended all documents regarding the vote taken by Generalitat and the Catalan Parliament. Thus, the court declared all further actions of the Catalan authorities on the preparation of the referendum illegal.

According to polls, the independence of Catalonia supports 41% of the population of the Autonomous community, 49% oppose. For a referendum on the status of the Autonomous community are 80% of Catalans, but most of them believe that voting should be coordinated with the Central authorities in Madrid.

In Catalonia received 14% of all investment in the country, however, it is inferior for this indicator, Madrid, which receives 64% of the investment.

Unemployment in the Autonomous community fared better than in many other Spanish regions: if the national average 17.2% in Catalonia and 13.2%. The problem of unemployment largely solved by the tourism sector. In 2016, Catalonia was visited by 18 million tourists (only Spain – 75,6 million), Barcelona’s airport El Prat transported 44 million passengers.

In addition to tourism, developed agriculture, chemical industry and automotive, here are the major ports of Spain. Port in Barcelona on traffic volumes, the third in Spain after Algeciras and Valencia, and one of the largest in the Mediterranean by the number of accepted cruise ships.

The more you earn – the more you pay to the Treasury, these are the rules. As a result, the difference between what pays and what Catalonia receives from the Spanish budget, according to the Ministry of Finance of Spain, is 9.9 billion euros (5% of the GDP of Catalonia). Generalitat gives a figure much higher $ 16 billion.

However, the government of Catalonia does not mention the other figures. Almost 30% of all money allocated by the state to rescue the economy in crisis, occurred in Catalonia. The total amount of 67.4 billion euros.

The big problem is debt – more than 35% of the GDP of the Autonomous community (in 2016, the GDP amounted to 212 billion euros), is third in the country after Valencia and Castile-La Mancha. Hole in the Catalan budget increases every year. In 2007, the debt was $ 15.8 billion, in 10 years it grew by 378%, reaching in the first quarter of this year 75,4 billion euros.

Loss of «independence»

Spanish authorities warn that in case of the Declaration of the independence of Catalonia could lose up to 30% of its GDP, exports will fall sharply and the unemployment rate threatens to double. «The independence of Catalonia is absolutely meaningless from an economic point of view,» — said the Minister of economy of Spain Luis de Guindos, confident that «this scenario (separation from Spain) will not be carried out.» «Catalonia will not cease to be part of the EU and the Eurozone, as it will remain part of Spain. Another scenario is absolutely not consider investors and the markets», — said the Minister.

President of the Catalan business Association Empresaris de Catalunya, which includes 300 companies in the region, Josep Bou said, foreign investment in the region is frozen since 2008 in Catalonia was 2 624 of the company less (the difference between the new and those that have closed or left the region), in Madrid the number of new companies during the same period has doubled. He noticed that foreign investors are reluctant to invest in the Catalan economy: if in 2016, the growth of foreign investments in the whole of Spain was 12% in Catalonia and 8%.

«But what concerns us most is that this «process of independence» does not lead to improvements, not to come to some agreements as to split, to separate Catalonia from Spain. Entrepreneurs are concerned that. If Catalonia leaves Spain, it goes from the EU», — reminded the bow. According to him, in the case of separation of Catalonia to the territories will not be applicable to any European treaties, the region can put an end to free movement within Europe of goods, services, labour and capital, to forget about the Eurozone.

The President of the Association of Spanish entrepreneurs Circulo de empresarios de Javier VEGA Seoane gave another figure: only in the last five years, Catalonia has missed 1.6 thousand companies, although he acknowledged that it happens not only because of the actions of the authorities of the Autonomous communities, but also because in other Spanish regions more favorable tax treatment. «Entrepreneurs don’t do politics, but we need institutional base guarantees, we are interested in stability, which will allow us to safely do business. Catalonia is beneficial to stay in the EU, and entrepreneurs interested in working in the area where to implement the law,» says de Seoane.

The Spanish authorities are willing to change the rules of the game

On Thursday, the Minister of economy of Spain Luis de Guindos made clear: in order to solve the Catalan question Spain is ready to change the rules of play and conduct a dialogue about changing the system of financing the Autonomous communities, including Catalonia, which, according to the Spanish Minister, Madrid is «like a mother, not stepmother.»

«We are not blind, we know that there is discontent in parts of Catalan society… there is nothing written in stone, there are rules,» said de Guindos.

The Declaration of independence for Catalonia is not profitable, I think in Spain© RIA Novosti / Marina to Californiaprivate in fotobanka not commented on the appeal to mediation on the referendum in Catalonian of Spain considers that the political situation in Catalonia may adversely affect investor confidence, but do not believe that this effect will be long-term or will be a big problem for the country’s economic growth. According to forecasts published by the Bank of Spain on Thursday, Spanish GDP next year will grow by 2.5% and in 2019 – by 2.2%.

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