Political crisis in Catalonia paralyzes economic projects

Spanish Economy Minister Luis de Guindos said investment projects in the Catalonia region were paralyzed by the ongoing political crisis.

Speaking to the press in Barcelona, ​​Minister Luis de Guindos emphasized that the Spanish economy is on a strong growth path but it is also difficult to avoid the impact of the independence referendum in Catalonia.

“Clearly, political instability is paralyzing all investment projects in Catalonia. Currently, no international or national investor dares to participate in new projects in this region. The social structure in Catalonia is very large. We see this clearly and consider it a major concern due to the lack of responsibility of the local government,” he said.

A protester carries a separatist flag onto the balcony of Catalonia's Economy Ministry building.(Photo: Reuters)

According to Mr. Luis de Guindos, the Spanish government will not accept mediation or any form of compromise because this is not about solving the problem between the two sides but about enforcing the laws of Spain in particular and of the European Union in general.

There is a clear rule that if a part of a European Union member state declares independence or goes through a secession process, it will be outside the European Union treaties, without common benefits and without access to the bloc's single market. In addition, it will have to pay taxes and abandon the euro.

Also today, the Spanish Constitutional Court ordered the suspension of a session of the Catalan legislature on October 9. It is expected that the Catalan leaders will unilaterally declare independence from Spain during this session.

On October 1, despite the opposition of the Spanish central government, the leaders of the Catalan region held an illegal referendum to separate from Spain, pushing the country into the worst political crisis in decades. The Spanish government and the Constitutional Court affirmed that this referendum was unconstitutional, going against the goals and ideals of the European Union (EU). The EU also strongly opposed the referendum of the Catalan region./.

According to VOV