Spain: Catalonia elections a 'pressure relief valve'? – Rabobank

Catalonia declared unilateral independence last Friday, but the regional government was then dismissed by the central government and the regional government is unlikely to hand over power without resistance, explains Maartje Wijffelaars, Senior economist at Rabobank.

Key Quotes

“More strikes and ongoing demonstrations should be expected the coming weeks.”

“Snap elections will be held on 21 December. Currently, pro-independence parties stand to lose, but polls are too close to call and elections will not solve the crisis.”

“Most important for now is that Catalonia is not really independent and still part of Spain and the EU. We believe that Catalonia will remain part of Spain, but ends up with more autonomy.”

“For 2018 we forecast economic growth of around 2.2%, after 3.1% in 2017.”