We give you our thoughts on the evolving political situation in Catalonia and Spain, the possibility of "Catalexit" and what this will mean for your Euros. Read on for more.
Mounting tensions between Spain and Catalonia are weighing heavily on the Euro, with markets jittery over the prospect of an imminent declaration of independence by Catalonia. Over 2 million Catalan voters faced police brutality to vote in Sunday’s disputed independence referendum. However the Spanish central government is condemning the vote as illegal and is refusing to acknowledge the result. Today a panicked Spanish Government made further attempts to bring Catalonia in to line by having the Spanish Court suspend a Catalan Parliament session scheduled for Monday, in an attempt to block an expected declaration of independence by the Catalan President. Brussels also got involved and issued Catalonia with an ultimatum “If you quit Spain, you quit the EU too”. Talk is tough, but what would a true “Catalexit” mean for the single currency? We expect that if Catalonia declares independence from Spain it will be bad news for the Euro and we could see the currency fall off a cliff edge. These fears will weigh heavily on the Euro in the days to come. Commentators including Belgium’s Philippe Lamberts, Head of the Green Grouping in the European Parliament, said that the crisis “threatened the spirit of European integration, even more than Brexit”.
Will you exchange your currency before next week? Or will you wait and see? Let us know what you think in the comments section.