Independence Drive Falters For Spain's Catalonia
Catalonia is responsible for around a fifth of Spain's economic output and many residents complain that the central government in Madrid takes in more tax money from the region than it gives back. But now Catalonia is the most indebted region in Spain and has had to seek a â¿¬5.4 billion bailout from Madrid.
The central Spanish government, which fiercely opposes the idea of an independence referendum, was quick to praise the vote.
Foreign Minister Jose Manuel Garcia-Margallo called the outcome "a good result for Catalonia, Spain and Europe, though not for Convergence and Union."
Deputy Prime Minister Soraya Saenz de Santamaria described the election as "a serious blow for Mas" but one that "put the priorities in order.""Voters want governments focusing on the crisis and creating jobs," she added. In all, the ruling party in Catalonia lost 12 seats, going down to 50 in the 135-seat regional legislature, with the Republican Left coming in second with 21. Five other parties split the remainder, with most of those seats going to parties opposed to independence. Republican Left leader Oriol Junqueras said voters had issued a "mandate to hold a referendum," but he ruled out forming a coalition with Convergence and Union. Junqueras said his party would continue to demand that Mas' government change its austerity policies, calling for lower taxes for most and for banks and the rich to shoulder more costs. But he didn't rule out working with Mas on specific issues. Jordi Matas, a political science professor at the University of Barcelona, said Mas might try to seek a limited deal with the Republican Left only on the referendum and other issues that falls short of a coalition. While pro-referendum parties won a majority in the vote, Matas said the result of a hypothetical referendum is too hard to predict.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV