EU In Deeper Trouble Than We Had Thought?

Catalonia ‘lays foundation for what may happen across EU’, says top economist.

CATALONIA’S declaration of independence from Spain could be “the foundation for what will happen across the EU”, a top economist has said.

By THOMAS MACKIE

GETTY

“Catalonia could be the foundation for what will happen across the EU”

The Catalan regional Parliament voted to declare independence from Spain on Friday taking the nation’s worst political crisis in four decades to a new level.

This has resulted in investors selling stocks and government bonds after Madrid's financial market was hit with the news.

The Government in Madrid has refused to recognise Catalonia’s declaration and warned direct rule would be immediately imposed - by force if necessary.

Following the news, the Prime Minister of Spain Mariano Rajoy announced he fired the entire Catalan government, including the region’s president Carles Puigdemont. Express.