Spain: Central government wants a clarification – ING

Sandeep Kanihama FXStreet Contributor

Spain’s central government asked Catalan leader Carles Puigdemont to clarify what he said in his speech last Tuesday and the ball is back in the Catalan court, according to Steven Trypsteen, Economist at ING.

Key Quotes

“Last Tuesday, Puigdemont spoke to the Catalan parliament. The big question at the time was whether he would declare Catalonia independent or not. After the speech there was a lot of confusion about whether or not he declared Catalonia independent.”

“Yesterday, Prime Minister Rajoy responded by asking Puigdemont in a formal letter to clarify his speech. Moreover, the central government notified that the process of the suspension of home rule has started, which triggers Article 155 of the Spanish constitution.”

“Puigdemont has now until 10:00am on Monday, 16 October to clarify whether or not he declared Catalonia independent. If Puigdemont replies he did not, then the process of the suspension of home rule will stop. If Puigdemont replies he did or if he does not reply at all, then he has an additional three days to officially withdraw that declaration.”

“Pressure to end this crisis from businesses is rising as a number of firms with their corporate address in Catalonia have announced they will move it outside Catalonia. All the same, these recent events imply that the Catalan crisis is not over yet.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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