The main argument against independence is economic. Independence would constitute a shock … larger than the hardest of Brexits.
Wolfgang Münchau writes that Catalonia is economically unprepared for independence, observing that such an event would necessarily precipitate a “Catalexit” from the EU and the World Trade Organisation (WTO).
With independence, Catalonia would lose its Spanish ‘citizenship’ and thereby both its European citizenship and WTO member status.
It is unlikely that Catalonia would be able to maintain any type of association with Spain that would allow it to benefit from reduced WTO tariffs.
The immediate exit from Europe could trigger another eurozone crisis and cause the region’s banking system to collapse.
Catalonia lacks a central banking infrastructure and would not be able to introduce its own currency on independence day.
A think tank engaging in independent research of Sri Lanka’s international relations and strategic interests, to provide insights and recommendations that advance justice, peace, prosperity, and sustainability.