Catalonia suspends the announcement of the independence of the euro and then the gold withdrawal

The speech of the president of the Catalonia Autonomous Region of Spain, Puigdemont, was scheduled to take place at 00:00 on Wednesday, Beijing time, after an hour of delay, although Puigmont said that Catalonia won The right to independence, but proposed that the local council suspend the effectiveness of the referendum results for several weeks, means suspending the declaration of independence. During the speech, the euro fell first and then rose, the V-shaped reversal, and the price of gold fell.

Puigmont said in his speech that "the results of the independent independent referendum conducted on October 1 supported the independence of Catalonia, and Catalonia won the right to independence. Millions of Catalans believe that Catalonia should have its own country and request authorization to declare Catalonia's independence."

Despite this, he also said that “proposed local councils to suspend the effectiveness of the referendum results for several weeks”, which means that Catalonia has not really declared independence and extended the time for negotiations with the Spanish government.

He said that the issue of Catalonia has risen to the point of Europe and it is very important to reduce the tension in the Catalonia region. Catalonia does not plan to commit any threats, and our way forward can only be led by democracy and peace.

Puigmont said that the current relationship with Spain is not sustainable, the Catalan government has repeatedly sought dialogue, and the conflict with Spain can be resolved through dialogue, and hopes to reach a new understanding with Spain.

During the speech of Puigmonte, the euro fell first and then rose, the V-shaped reversal, and the price of gold fell.

EUR/USD 1 minute chart Spot gold 1 minute chart Social tearing In the Catalonia Autonomous Region referendum held on October 1, 43% of the people participated in the vote. The results show that 90% of the people support the independence of the Catalan autonomous region. Earlier, the Spanish central government had announced that the vote was "illegal."

Although the independents represented by Puigmont have the upper hand in the autonomous regional government, not all Catalans agree with the practice of the autonomous regional government. The Catalans who voted against independence have been holding demonstrations recently, calling on the parties to boycott regional independence. These include Ada Colau, the mayor of Barcelona, ​​the capital of Catalonia.

Colo has stated on the 9th that he does not support the unilateral declaration of independence. He called on the central government to conduct further dialogue with the autonomous regional government to avoid a deadlock in the situation. In an interview with the media, Kolo stressed that the results of the "referendum" on October 1 can only serve as a medium for dialogue with Madrid and international intervention. He urged the president of the autonomous government, Puigmont, not to use the "referendum" as a justification to unilaterally declare independence so as not to tear society.

The same idea as Kolo is the autonomous government cabinet member Santi Vila. He wrote in the newspaper that he hopes to continue negotiating with the central government instead of immediately declaring independence so as not to trigger a large-scale street conflict.

It is no longer the first time for the Catalan autonomous region to seek an independent referendum. According to past experience, if the results of the "independent referendum" are passed in Parliament, the autonomous region will begin a six-month negotiation process with the central government. However, the central government has pointed out that the "referendum" held on October 1 violated the Spanish Constitution. Coupled with the central government's claim to withdraw "autonomy", many local companies have begun to "vote with their feet."

Banco de Sabadell SA, one of the largest banks in the Catalonia region, announced on Thursday that it will move its headquarters from Barcelona to Alicante, a city in southeastern Spain. CaixaBank, the largest local bank in the Catalonia Autonomous Region and Spain's third-largest bank, said in a previous statement that it would move its legal headquarters to Valencia. Textile giant Spain's Dogi International Fabrics has also said it will move its legal headquarters from Barcelona. Spain's largest natural gas company, Gas Natural Fenosa, which is also Europe's second largest gas company, said in a statement that it was precisely because of the recent unstable political ecology of the Catalonia autonomous region that prompted the company to make a decision to relocate. . Biotech company Oryzon Genomics of Spain is also planning to move from Barcelona to the capital Madrid.

The Spanish central government has stated that it will help companies to move their legal headquarters out of Catalonia more easily. In this regard, Puigmont said in his speech that the headquarters move out will not have much impact on the local economy.

The cost of independence is not high. Whether it is the Spanish central government, the business sector, or the European Union, it is not willing to face a fragmented Spain. Similarly, for the Catalan autonomous region, whether it is political or economic, the cost of independence is not cheap.

Earlier, the European Commission stated that the independent referendum "does not comply with" Spanish law. "The question of the Catalan autonomous region is the internal affairs of Spain, and the EU will not interfere." The European Union Executive Committee Chairman Juncker has said that he will only respect the results of the independent referendum held in accordance with the Spanish Constitution.

The leadership of the French and German governments has also expressed their stance and will always stand on the side of the Spanish central government and "support a unified Spain." A spokesperson for the German government said that Chancellor Merkel had called the Spanish Prime Minister Rajoy on the 9th local time. During the period, Merkel said that he will firmly support the unification of Spain. French Minister of European Affairs Nathalie Loiseau also said on the same day that if the Catalonia Autonomous Region of Spain unilaterally declares independence, France will not recognize it.

As far as the EU is concerned, in the existing laws and regulations, there is still no provision on how to deal with the EU after a region that was originally affiliated with a certain country. However, Prodi Doctrine, named after former EU President Prodi, shows that once a region withdraws from a member state, it will automatically lose its status as an EU. This means that once the Catalonia Autonomous Region declares independence, it will withdraw directly from the EU. In this way, holders of any autonomous regional passport will not be able to move freely within the EU, and goods, goods and services from the region will also be blocked from the EU. In addition to the impediment to the free movement of people, goods and services, the Catalan autonomous region has lost the qualification to use the euro and must issue its own currency.

After independence, the autonomous region still hopes to join the European Union and must reapply for the qualification to enter the EU as a new country. However, according to the existing laws of the European Union, any member is eligible to vote against the EU before accepting new members. It seems that EU member states will definitely prevent independent regions from joining the EU.