Loading ...The showdown in Catalonia is far more serious for markets than you realize
Top global banks and bond funds are increasingly alarmed by the secessionist showdown in Spain, fearing that Catalan leaders will declare unilateral independence within days and set off a dangerous chain-reaction.
Events on the ground are moving with lightning speed. Rafael Catala, the Spanish justice minister, warned that Madrid is preparing to strip the rebel region of its autonomy and police powers by triggering Article 155 of the Spanish constitution, the “nuclear option.”
Investors are no longer so certain that the crisis will be defused before it reaches the point of outright rupture, a calamitous outcome that would lead to Catalonia’s ejection from the euro and engulf Spain’s economy in the process.
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