The Spanish Association of Banking (AEB) -which includes almost 90 entities- and the Spanish Confederation of Savings Banks (CECA) –more than 40- have warned in an “institutional declaration” of the risks that the independence of Catalonia would entail the stability of the Catalan banking sector and have warned in an unusual statement that, if this happens, a “financial exclusion” could occur.
These difficulties would force the entities to reconsider their implementation strategy
The employers, one of them (CECA), chaired by the head of Caixabank, the Catalan Isidre Fainé, stated in their statement that “the exclusion of Catalonia from the euro zone, as a result of the unilateral rupture of the current constitutional framework, would entail that all banking entities with presence in Catalonia would face serious problems of legal insecurity. ”
“These difficulties would force the entities to reconsider their implementation strategy, with the consequent risk of a reduction in the banking offer and, with that, financial exclusion and increased cost of credit, ” the statement added.
The AEB and the CECA have decided to “pronounce” nine days before the Catalan elections – proposed by the President of the Generalitat as a plebiscite for independence – on “the risks to financial stability that would imply any political decision that violates the current law and entail the exclusion of a part of Spain from the European Union and the euro “.
The declaration was made public 24 hours after the European Commission reiterated that if Catalonia became independent it would cease to be part of the EU and would be considered a third country outside the community club.
It will lead to the exclusion of a part of Spain from the European Union and the euro
The employers of the financial sector consider that “at all times the constitutional order and belonging to the euro zone of the whole of Spain must be preserved”.
“Otherwise, the objective of the entities would be put at serious risk, which is to protect their depositors and maintain the flow of financing to families, to SMEs and to the productive and job-generating sectors of the country”, underline the entities banks, which make a “call” to political leaders to ” through dialogue promote reforms that allow progress to continue in achieving higher levels of welfare and social cohesion for all.”
The pronouncement of the Spanish banks and savings banks has coincided with an “institutional declaration” of the Círculo de Empresarios.
In this declaration, entitled “United for Diversity”, the Circle of Entrepreneurs is convinced that if the sovereignty claim prospers, “the Spanish economy and especially the Catalan one would suffer very serious damages”.
In addition, he adds, when Catalonia is located outside of Spain “it would cease to belong, immediately, to the EU, the euro, the United Nations and the National Organization of Trade .”
According to the text, approved unanimously by the board of directors, this would lead to the relocation of companies, the fall in investment, GDP, per capita income, the level of employment and, ultimately, social welfare.
Already last Wednesday, the Circle of Economy rejected that the elections of the 27-S are plebiscite on the independence of Catalonia and considered that this question, in any case, should settle in a ” legal consultation, agreed and well informed “, to the margin of “unilateral decisions” that jeopardize legality and EU membership.