trending Market Intelligence /marketintelligence/en/news-insights/trending/vx5JJj8o6IhFX7fzDWMwUQ2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

Spain cuts growth forecast for 2018 due to Catalonia crisis

Blog

Banking Essentials Newsletter - February Edition, Part 2

Podcasts

StreetTalk – Episode 74: Investor sees legs in strong credit performance, US bank stock rally

Blog

Street Talk – Episode 74: Investor sees legs in strong credit performance, US bank stock rally

Blog

The Evolution of ESG Factors in Credit Risk Assessment: Environmental Issues


Spain cuts growth forecast for 2018 due to Catalonia crisis

The Spanish government trimmed its 2018 forecast for economic growth to 2.3% from 2.6% because of the ongoing political crisis stemming from the independence vote in Catalonia, which represents a fifth of Spain's economic output, Agence France-Presse reported, citing a budget plan sent to the EU.

Prime Minister Mariano Rajoy's government believes that mounting uncertainty over Catalonia is endangering Spain's recovery from the financial crisis.

Catalan President Carles Puigdemont said Oct. 10 that the region had voted to secede from Spain but that it would suspend independence while it sought a dialogue. Rajoy gave the regional government until Oct. 16 to clarify whether it had declared independence. Instead, Puigdemont sent a letter to the prime minister proposing a two-month period of talks with Madrid.

Puigdemont now has until Oct. 19 to clarify whether he will drop his bid for secession or that no declaration of independence occurred. The Spanish government plans to implement Article 155 of the constitution to impose direct rule if Puigdemont does not respond.