Catalan independence movement harms Spanish economy, companies say | News | DW

Three out of four Spanish business leaders believe that the Catalan movement for independence from Spain is proving detrimental to the national economy, reveals a poll published in the Spanish newspaper El Pais.

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In Catalonia, the share of respondents who shared this opinion was 43%. El Pais pointed out that Catalan companies have undertaken advertising campaigns expressing their unease with the secessionist movement. Separatists would like to see the northeastern region of Spain unilaterally separate from the rest of the country and become its own independent state.

Around 20% of national respondents believed that the push for Catalan independence did not affect the national economy. One percent of respondents felt it had a positive impact.

But when respondents were asked about the direct impact on their own businesses, the answers were different. Some 59% believed their sole proprietorship was not affected, while 34% believed their businesses were negatively affected. One percent thought the impact on their businesses was positive.

The poll conducted for the newspaper by consultancy firm Deloitte questioned 265 companies that employ more than 800,000 people and have a combined turnover of more than one billion euros ($1.16 billion).

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Among the various economic sectors, the tourism industry expressed the greatest concern about the negative economic impact, with three in four hoteliers believing the push towards independence was hurting their business.

The tourism sector represents 11% of Spain’s GDP and 12% of Catalonia’s GDP. El Pais noted that Catalonia was the main destination for international tourists in Spain in 2016, with some 17.4 million visitors traveling to the northeast region.

Words of warning from the Minister of Economy

On Sunday, Spanish newspaper ABC published two interviews with Spain’s Economy Minister and conservative People’s Party member Luis de Guindos, who painted a positive picture of Spain’s overall economic progress so far this year and predicts that GDP growth could exceed 3.2%.

The International Monetary Fund has forecast that Spanish GDP will grow by 2.6% in 2017.

Economy Minister Guindos has warned of disastrous economic consequences for Catalonia if it separates from Spain

However, Guindos took a much harsher tone when asked about the future consequences of the Catalan independence movement and the referendum scheduled for October 1, which the central government opposes. The Constitutional Court of Madrid considers the proposed referendum a violation of national law.

“There will be no referendum,” Guindos said, describing secession as both “illegal” and “irrational” before warning of the predicted damage of a nation cut in two. “We at the Ministry of Economy have analyzed the impact of secession and it is estimated that it is causing a 25-30% increase in poverty in Catalonia and a doubling of unemployment.

Madrid announced last week that it would cut state funds for Catalonia if the region used state money to prepare for the referendum.

The latest poll released by the Catalonian regional government shows that around 49% of Catalans would like to remain united with Spain, while around 41% favor a split.