Catalan Independence: Bad For Spain (and Catalonia)

10/27/17 03:05PM EDT

https://youtu.be/D6uC2Y1F6CE

Huge news in Europe today…Catalan lawmakers voted to declare independence from Spain. Meanwhile, Madrid immediately moved to quash the breakaway bid in a sharp escalation of a crisis that has caused jitters in secession-wary Europe.

Renowned European economist and author Daniel Lacalle joined us in the HedgeyeTV studio this afternoon to offer his take on the developments. He discussed the implications with Hedgeye CEO Keith McCullough.

A few quick thoughts from Lacalle:

  • Catalonia secession is not about freedom, it is about bureaucracy
  • Catalonia risk could reduce Spain GDP growth to 2.3% in 2018 vs 3.1% 2017
  • Secession would result in recession for Catalonia and negative GDP revisions for Spain

Watch the clip above from their interview.

The full interview will be released next week.

Catalan Independence: Bad For Spain (and Catalonia) - etf pro

© 2019 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.