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Back to stability

Catalonia must quickly recover legal certainty and investor calm

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Back to stability

One of most reliable indicators of damage caused in Catalan society by Secessionism is massive change of headquarters of companies. So far, more than 1,800 companies have abandoned autonomous community, driven by a unbreathable atmosphere of legal uncertainty, by expectations that situation could become violent and by fear of losing umbrella of stability European economic. Since last Friday, re are reasons to assume that with recovery of political stability legal certainty will be restored, an intangible one which for investors conditions in first instance future profitability of capital.

All international economic institutions and also Spanish government agree that damage caused by failed independence attempt is directly related to time it takes to restore political and legal security in Catalonia. The longer normality is delayed, greater economic deterioration, from contraction of investments to fall of tourism; And longer liquidation of this procés more risk exists that economic instability in Catalonia will spread to Spanish economy and, indeed, also to European one.

Previous Editorials

The end of ' Procés ' (29/10/2017)

Chain of Deceits (25/10/2017)

Braking to Growth (20/10/2017)

For se reasons it is imperative to stabilize Catalan politics and economy with some urgency. There is reason to assume that government decisions (application of article 155, call for autonomic elections on 21 December) will contribute to this normality, unless y mediate social or political upheavals. In fact, Catalan companies have begun to recover some of lost stock market capitalization during Procés crisis. The signs of standardization that come from markets are most effective medicines to regain business confidence.

The state's political intervention to restore stability is not enough. One of essential conditions to recover economic pulse is that re is no unreasonable rejection of Catalan products in rest of Spain. Campaigns organised against Catalan products are not only childish and difficult to argue, but also, as any citizen knows, y are unjust and chaotic. But re is an even more powerful reason to reject such campaigns. In a global and highly interrelated economy, when a regional product is being punished, intermediate manufactures and supplies from or regions are being penalized. A boycott of Catalan products is most likely to imply losses in production of jobs in Andalusia or Extremadura.

It would be advisable for government to make a public appeal for normality of consumption and absolute rejection of Anticatalan campaigns. Gestures matter a lot, for economic stability and for political encouragement. We must return to a standardized integration of Spanish economy immediately.

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