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Catalonia to hold independence referendum Sunday as tension rises

Catalonia to hold independence referendum Sunday as tension rises
Catalonia to hold independence referendum Sunday as tension rises

By Hanadi Watfa

MADRID, Sept 30 (KUNA) -- Catalonia region will hold a historical referendum on Sunday on separation from Spain, an illegal step strongly refused by Madrid, after long years of tension between the two sides.
Catalonia's regional government called on 5.34 million citizens to vote in the referendum, which was suspended by Spain's Constitutional Court earlier this month. Madrid considered the step as a violation of the country's constitution and the rights of Spanish people.
Despite Madrid's refusal, Catalonia's leader Carles Puigdemont said on Friday that there will be 2,315 voting booths, among them are 207 in the capital Barcelona. In response to the referendum, the Spanish government sent about 5,000 policemen and Civil Guard in ships to Catalonia's shores. Madrid also arrested 16 senior Catalan officials on September 20, with charges of mutiny, embezzlement and creating tension in the country. Moreover, it blocked financial accounts of Catalonia's government to prevent it from funding the voting process, while also blocking the referendum's online websites.
Catalonia on its part, had approved proceeding with the referendum early September, followed by approving the "Catalan transition law," set to be enforced if the referendum result was a majority of "yes".
The separation process is mainly due to economic reasons, as Catalonia stated that it is losing 16 billion euro (USD 18.9 billion) per year as a cost for being under Spain. Madrid meanwhile, denied such allegations and asked Catalonia on its plans on paying for retirement salaries, public services, debts and infrastructure after the separation.
In this matter, Spain's National Statistics Institute showed that Catalonia contributes 19 percent to Spain's production. The region presented 211.8 billion euro (USD 250.2 billion) to the country's GDP in 2016, while Catalan citizens represent 16 percent (7.41 million) of Spain's population.
Although the statistics show that Catalonia can stand as an independent state, economic experts warn that the region would suffer from sanctions imposed by Madrid if the secession process was done.
According to a recent report by Credit Suisse bank, the region will lose about 20 percent of its GDP as a result of the separation, without taking in mind the costs of issuing a new currency and new governmental bodies.
Meanwhile, Spain itself will also lose 411.2 billion euro (USD 485,7 billion) annually, leading the country to retreat into the sixth place from the fifth in the European GDP index, said HSBC Group bank.
As part of the expected economic crisis in Spain after the separation, J.P. Morgan bank called on investors to sell their Spanish assets and replace them with German or Portuguese assets.
The American Chamber of Commerce in Spain (AmChamSpain) on its part, warned that many companies headquartered in Catalonia are planning to move out of the region due to the ongoing tension.
The biggest problem Catalonia would face is losing the privileges of being part of Europe, which plays a huge part in the region's economy through exporting goods to Spain and the rest of the continent.
Statistics showed that less than 50 percent of Catalans are supporting the referendum. (end) hnd.ag