Catalonia economy

German companies worried about the future of Catalonia | Business | Economic and financial news from a German perspective | DW

As the world waits to see whether Spain’s autonomous region of Catalonia will declare independence from Madrid early next week, German business leaders warned on Friday that the move could leave their investments in legal and economic limbo.

Catalonia’s leaders have vowed to defy a ruling by Spain’s Constitutional Court banning the planned meeting of the regional parliament on Monday. The assembly plans to debate the results of last weekend’s referendum, where Catalans voted overwhelmingly to secede from Spanish sovereignty. An official announcement declaring autonomy could even come on the same day.

“The situation in Spain is making German companies nervous,” the new president of the German Federation for Wholesale, Foreign Trade and Services (BGA), Holger Bingmann, told Reuters news agency.

wait and watch

A similar warning was issued by Volker Treier, the head of foreign trade at the German Chambers of Industry and Commerce (DIHK).

“Political instability is a direct threat to economic development,” Treier said. “The doubts about whether Catalonia will continue to belong to Spain, and therefore to the European Union, are disturbing for German companies.”

He warned that any move towards independence would leave significant legal uncertainties for companies operating in the region.

Read more: The Catalan separatist movement driven by more than the economy

The latest twist in Catalonia’s years-long independence movement comes as Spain recovers from a deep economic crisis that has seen unemployment hit record highs of 27%, property prices plummet and several banks need government bailouts. The Spanish government has even requested a 100 billion euro ($117 billion) bailout from the European Union.

The status of the EU in question

Catalonia is one of the most prosperous regions in Spain and plays a major role in Spanish cross-border trade due to its location on the Mediterranean Sea and its proximity to the French border. Any declaration of independence could cause it to lose access to the European Union’s internal market, at least temporarily, until it becomes a full member of the EU.

Read more: Catalan banks prepare to change headquarters after secession

“Many companies could leave this region,” said Spiegel Online, quoting Eckart Woertz, research coordinator of the Barcelona Center for International Affairs think tank, “especially if companies fear permanent exposure to an opaque legal situation.” .

“Things could unfold quickly,” warned Albrecht Peters, president of the Barcelona circle of German-speaking executives. He said Catalonia’s economy had already suffered in the build-up to last Sunday’s referendum and “we are now heading into uncharted waters”.

  • Greek ruins in Empuries

    The independence movement of Catalonia – a brief history

    Rich ancient heritage

    Catalonia was settled by the Phoenicians, Etruscans and Greeks, who were mainly found in the coastal areas of Rosas and Empuries (above). Then came the Romans, who built more settlements and infrastructure. Catalonia remained part of the Roman Empire until it was conquered by the Visigoths in the 5th century.

  • Embarkation of Jacques I in Salou to conquer Majorca, an engraving in L'illustration catalane, 1904

    The independence movement of Catalonia – a brief history

    Counties and independence

    Catalonia was conquered by the Arabs in 711 AD. The Frankish king Charlemagne halted their advance at Tours on the Loire, and by 759 the north of Catalonia was once again Christian. In 1137, the counties that made up Catalonia entered into an alliance with the Crown of Aragon.

  • An engraving showing the Peasants' Revolt in Catalonia

    The independence movement of Catalonia – a brief history

    Autonomy and war of succession

    In the 13th century, the institutions of Catalan self-administration were created under the banner of the Generalitat de Catalunya. After the unification of the crown of Aragon with that of Castile in 1476, Aragon was able to largely retain its autonomous institutions. However, the Catalan Revolt – from 1640 to 1659 – saw parts of Catalonia ceded to present-day France.

  • A mass demonstration in Barcelona on September 11

    The independence movement of Catalonia – a brief history

    memory of defeat

    After the conquest of Barcelona on September 11, 1714 by Bourbon King Philip V, the Catalan institutions were dissolved and self-administration came to an end. Every year on September 11, Catalans commemorate the end of their right to autonomy.

  • Francisco Pi and Margall

    The independence movement of Catalonia – a brief history

    Federal Ideas in an Enlarged Republic

    After the abdication of King Amédée I of Spain, the first Spanish Republic was proclaimed in February 1873. It lasted barely a year. Republic supporters were divided – one group supporting the idea of ​​a centralized republic, the others wanting a federal system. Pictured is Francisco Pi i Maragall, supporter of federalism and one of the five presidents of the short-lived republic.

  • Alfons XII King of Spain

    The independence movement of Catalonia – a brief history

    Failed attempt

    Catalonia sought to establish a new state within the Spanish republic, but this only exacerbated the differences between the republicans, eventually dividing and weakening them. In 1874, the monarchy and the House of Bourbon (led by King Alfonso XII, pictured here) took the helm.

  • Francesc Macia and Llussa

    The independence movement of Catalonia – a brief history

    Catalan Republic

    Between 1923 – with the support of the monarchy, the army and the church – General Primo de Rivera declared a dictatorship. Catalonia becomes a center of opposition and resistance. After the end of the dictatorship, politician Francesc Macia (pictured here) successfully lobbied for important autonomy rights for Catalonia.

  • Soldiers on the Catalan front in 1939

    The independence movement of Catalonia – a brief history

    The end of freedom

    Under the Second Spanish Republic, Catalan legislators worked on Catalonia’s autonomous statute. This was approved by the Spanish parliament in 1932. Francesc Macia was elected president of the Generalitat of Catalonia by the Catalan parliament. However, Franco’s victory at the end of the Spanish Civil War (1936 to 1939) put an end to all of this.

  • Francisco Franco addresses the naval forces

    The independence movement of Catalonia – a brief history

    Loss of freedoms

    The Franco regime ruled with an iron bar. Political parties were banned and the Catalan language and culture suppressed.

  • The building of the parliament of Catalonia

    The independence movement of Catalonia – a brief history

    New statutory autonomy

    After the first legislative elections that followed the end of Franco’s dictatorship, the Generalitat of Catalonia was provisionally restored. Under Spain’s democratic constitution of 1978, Catalonia received a new statute of autonomy a year later.

  • Jordi Pujol

    The independence movement of Catalonia – a brief history

    New and different status

    The new statute of autonomy recognizes the autonomy of Catalonia and the importance of the Catalan language. Compared to the 1932 law, it has been strengthened in the fields of culture and education but reduced in the field of justice. In the photo, Jordi Pujol, long-time head of the government of Catalonia after the dictatorship.

  • People hold colorful signs to form a giant Catalan flag

    The independence movement of Catalonia – a brief history

    Better self-awareness

    The desire for independence has grown stronger in recent years. In 2006, Catalonia received a new statute which expanded the powers of the Catalan government. However, he lost them after a complaint by the conservative People’s Party to Spain’s Constitutional Court.

  • A ballot

    The independence movement of Catalonia – a brief history

    First referendum

    A referendum on independence was already planned for November 9, 2014. The first question was “Do you want Catalonia to become a state?” If the answer was affirmative, the second question was asked: “Do you want this state to be independent?” However, the Constitutional Court suspended the vote.

  • Rajoy and Puigdemont wear boxing gloves on a poster

    The independence movement of Catalonia – a brief history

    Clash of the Titans

    Since January 2016, Carles Puigdemont has been president of the Catalan government. He followed the separatist course of his predecessor Artur Mas and called the new referendum for October 1, 2017. Spanish Prime Minister Mariano Rajoy rejected it as unconstitutional.

    Author: Richard Connor


A Siemens spokesman said a possible independence decision was “even more of a shock than Brexit” to his business “and even then we don’t know what’s going on.”

SEAT remaining in place

Volkswagen subsidiary SEAT is headquartered just 30 kilometers (19 miles) from Barcelona and employs more than 14,500 people at three production sites in Catalonia. Of the 449,000 SEAT and Audi cars produced there each year, more than 80% of them are exported to more than 80 countries. SEAT is one of the most important industrial giants in Catalonia and Spain.

Asked by DW about its future, a SEAT spokesperson insisted that the company has deep roots in Barcelona, ​​Catalonia and Spain, adding that: “We need a stable political environment in order to continue invest in jobs and economic growth. continue to closely monitor the evolution of the crisis.

Catalonia is Spain’s most important economic region for Germany. According to the regional government, almost 1,000 German companies have a branch in the northeastern region. In addition to SEAT, the chemical giants Bayer and BASF as well as the supermarket chain Lidl have a strong presence there. Germany’s total investment in the region amounted to half a billion euros in 2015, almost a third of which by food retailers.

Read more: Fitch joins S&P in Catalonia downgrade warning

More than 400 Catalan companies are represented in Germany, from the cava producer Freixenet to the hotel group Grupo Hotusa. Some 12% of Catalan exports go to Germany, which corresponds to a value of more than 7.5 billion euros. Only France imports more goods from the autonomous region.

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