Weekly Geopolitical Report – Welcome to the World, the Country of Catalonia? (October 6, 2014)

by Kaisa Stucke & Bill O’Grady

On November 9, the Catalonia region of Spain is due to hold a referendum for independence.  The referendum had previously been approved by the regional government; however, it was ruled unconstitutional by the Spanish Supreme Court.  Currently, it is unclear whether the November 9 referendum would result in a different outcome.

This week, we will look at the separatist movement in Catalonia.  We will start by giving a brief overview of the region’s history and politics, then look at the roots of the independence movement.  We will explore the probability of independence, the potential future relationship between the region and the central government, and the role of the EU and the Eurozone.  As always, we will conclude with market ramifications.

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