Spain has warned that if Catalonia did eventually gain independence their economy could shrink as much as 30%.
Spain believes that Catalan exit would lead to an automatic exit for the region from the EU and eurozone making 75% of its production subject to export tariffs.
Current Status
The regional government has passed a law of disconnection that allows it under Catalan law to break away from Spain.
Madrid and most countries did not recognise the Catalan announcement and Spain’s Constitutional Court declared it illegal immediately.
The Spanish government has taken control of Catalonia, dissolved its parliament and announced new elections after secessionist Catalan MPs voted to establish an independent republic.
