Economy of Spain

Spain: Rajoy warns of economic consequences of separation of Catalonia

Spanish Prime Minister Mariano Rajoy has warned business leaders in Catalonia on Saturday of "terrible economic consequences" if separatists gain independence for the region.

Speaking in the coastal town of Sitges, Rajoy told the business group of the Círculo de Economia that if Catalonia departed from Spain, the region could lose up to 30% of its GDP and would have to seek readmission to the European Union. Catalonia accounts for 20% of Spain's GDP and a population of more than seven million people.

Rajoy compared the campaign for the referendum on independence to the recent UK vote to leave the European Union. "The British were told Brexit would be great, and later some of them saw that it was an exaggeration and they had believed in lies," said Rajoy.

The prime minister reiterated his pledge that his government will not allow the referendum, which he called unconstitutional. "I will not authorize a referendum on independence because I do not want to and because I can not do it," Rajoy said. The Catalan government said it will hold the vote anyway in September.

Juan José Bruguera, president of the Círculo de Economia, asked Rajoy to resolve the political conflict by finding "alternative means that are not just black and white." Also on Saturday, popular separatist organizations gathered in Barcelona to demand that the regional government announce a date for the referendum. 

Source: Associated Press.