VIDEO SCRIPT: CATALONIA INDEPENDENCE

They have their own language, their own flag, and on Sunday, citizens of Catalonia could be paving the way to having their own country. Catalonia is Spain’s wealthiest region. Separatists there say they would be better off cutting ties with Madrid and the rest of Spain and local elections Sunday could put those separatists in power. The BBC reports:

 “As Catalonia’s economic crisis has worsened, the regional government has almost run out of money.  That has galvanized support for Catalan nationalist parties. The small town of Galifa, near Barcelona , has even decided to send its federal tax money to the regional government instead. It’s purely symbolic  since the region will just forward the money on to the federal level but it’s another sign that Catalonians  think they are ready to go it alone.

According to financial services group Credit Suisse, Catalonia on its own would be comparable in GDP per capita to the average  European Union nation . But Spain, having lost its richest region, would drop to the likes of Greece and Portugal.

Sounds like independence would work out well for Catalonia, but the Washington Post says that doesn’t take all the economic consequences into account.  If the region did formally secede, it might have to leave the euro and the EU, at least temporarily… Leaving the euro could cause a lot of economic disruption and Catalonia’s regional government remains highly indebted.

euronews reporter : Catalonia rises on a wave of independence

VIDEO WITH SCRIPT: Euronews reporter : Catalonia rises on a wave of independence


"I am part of Catalan culture, and it is very important to me."
"We have a very open way of seeing the world. For many years  Catalan culture was undermined, I feel that if we do not fight for it, that will happen again, we will lose our way of seeing the world."

This evening rehearsal has a special emphasis. The group will take part in a concert the next day promoting independence for Catalonia.

It's a theme that brought a million and a half people on to the streets of Barcelona, the capital of the autonomous region of Spain, during the Diada, the National Day of Catalonia last September.

Initiatives are springing up everywhere in the separatist region. The village of Sant Pere de Torello, became famous by declaring itself an independent Catalan territory. The pediment of the town hall has for a year and a half been flying the Catalan independence flag, but not the Spanish one.

"Currently, there are 180 town halls that have the flag of independence flying permanently from their balconies,". Separatists decry the state system of fiscal redistribution, including public spending in Catalonia which is well below the taxes they pay.

"We live in a state of national emergency, with an unemployment rate of 22.5 percent of the population here. Catalonia pays 16 billion euros annually to the state, which does not amount to any form of services or investment in Catalonia. We have to have this showdown with the Spanish government," 
Catalonia is among the richest regions in Spain, and it pays the equivalent of eight percent of GDP to the state. It is also one of the most indebted. Failure to negotiate an agreement with the Spanish government to give Catalonia fiscal sovereignty, has led the president of the Regional Government, Artur Mas, to call for early elections and a referendum on independence.

That would require reform of the Spanish Constitution, which does not permit independence, and of course steps to obtain international recognition.

"If Catalonia gets independence, it will be a state outside the European Union, and will have to apply for entry into the EU. To gain admission, provided that no member state objects, will require a very long process," 

Economist Oriol Amat believes it is a theoretical question.
"I can't imagine that the EU wants to keep out a state that brings money into the European Union and is very pro European Union and in which the EU has invested heavily in the past."
It's a question which not least concerns some Catalan businesses who fear the effect of a possible exit from the euro, and especially a deterioration in trade relations with Spain.
Some large companies have threatened to move their headquarters from Barcelona, if there was independence. None of those euronews contacted agreed to talk. Only this small publisher opened the door to us. , "About 80 percent of the billing and the company's sales are in the rest of Spain. We would at least in the short term lose all those customers, and that would very quickly force the business to close. Trading outside Spain, and the European Union, our products would be taxed. Moreover, our customers tell us that if Catalonia became independent, they would look for other suppliers, in their own country."

This family business is not concerned about economic nationalism. The company is riding on the wave of independence. Its, "signature" product is the Catalan flag of independence.
"We have seen a fairly strong increase in sales. Every year, we produce large stocks, but this year was a record. There are people who were queuing outside the company to buy the independence flag," .
Beyond the niche markets, will the Catalan, "label" be able to cope with the political uncertainties which generate the debate on independence?

Tourism, a pillar of the Catalan economy, fears neither boycott nor the loss of capital.
“For the first few months of the year, the figures are satisfactory with an increase in tourists from abroad of 11.4% and especially an increase in spending by visitors. Regarding foreign investment, the director general for tourism has several projects on the way. None of the investors expressed concerns or indicated that political issues could slow or paralyze these projects, ‘cause you know, business is business. 

The attraction of Catalonia to foreign investors should it become independent, raises questions. But speculation focusses primarily on the impact of  a likely boycott by sections of the Spanish market , which buys half of all the products which are sold outside the Catalonia region.
The question is whether this region of 7 and half million people can be viable among the 20 most competitive countries in the world. There are 14 that have less than 7 million.

If employers believe that Catalonia needs to amend the tax system detrimental to the region’s competitiveness, opinions differ on the question of independence, the likelihood in terms of which are still unclear. The priority is elsewhere, insists the Chief Economist of Catalonia’s federation of employers. With or without independence, we will continue to have problems of funding and increased the tax burden and it’s that which we will focus and that’s where we want to see our politicians help our country out of the crisis.

 It is a crisis that if Catalonia did go at alone would create a hangover, admits this small producer of wine and cava, the Catalan champagne. He will not suffer and believes the wine growing sector will avoid a boycott  as the company sells its products in Catalonia and outside Spain. He is confident about the ability of Catalan to rebound if indeed it gains independence. If Catalonia is separated from Spain, it would be a challenge. If it goes well, we can go forward and if there are problems and things go wrong, we can no longer blame Madrid because we will have caused the problems. To look over the bad times, I recommend a small glass of cava. That always works, it always helps to see life in a philosophical and joyful way and surely we will then get out of this problematic situation. The ongoing wrangle between Madrid and Barcelona raises questions and debate beyond the borders of Spain. To the backing of the crisis, the wind of separatism is blowing through Europe, from Catalonia to Scotland through Belgium questioning the future of European integration.

From a European perspective, I think it would be harmful. Catalonia would be an example for other national minorities and other countries to imitate and there would be a fragmentation in the European Union which is already fragmented.