Catalan President Puigdemont may declare independence tomorrow
Tomorrow Catalan President Puigdemont may declare independence from Spain. Last week Catalan conducted a banned referendum which was heavily supported by 90% of the vote, but only 43% of the regions 5.3 million voters actually voted. The vote also did not include the votes from the rest of Spain and was deemed unconstitutional as a result.
Although it is not know what Puigdemont might say, any declaration of independence from the region would likely lead to more violence. The referendum was accompanied by police violence as they tried to stop the vote from taking place. Tensions are high. The people will no doubt take to the streets.
Spain's President Rajoy has said he would use all lawful means to keep Spain intact. Rajoy has said the central government could take direct control of Catalonia, which currently has a measure of autonomy.
As for the market, any thoughts of secession threatens the EU and therefore should be negative to the EUR. However, there is a belief that breaking away is a long shot. So there is no need to expect a big move. Nevertheless, there could be some added volatility as the events play out.
