|
|
|
|
Search: 
Latin American Herald Tribune
Venezuela Overview
Venezuelan Embassies & Consulates Around The World
Sites/Blogs about Venezuela
Venezuelan Newspapers
Facts about Venezuela
Venezuela Tourism
Embassies in Caracas

Colombia Overview
Colombian Embassies & Consulates Around the World
Government Links
Embassies in Bogota
Media
Sites/Blogs about Colombia
Educational Institutions

Stocks

Commodities
Crude Oil
US Gasoline Prices
Natural Gas
Gold
Silver
Copper

Euro
UK Pound
Australia Dollar
Canada Dollar
Brazil Real
Mexico Peso
India Rupee

Antigua & Barbuda
Aruba
Barbados
Cayman Islands
Cuba
Curacao
Dominica

Grenada
Haiti
Jamaica
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines

Belize
Costa Rica
El Salvador
Honduras
Nicaragua
Panama

Bahamas
Bermuda
Mexico

Argentina
Brazil
Chile
Guyana
Paraguay
Peru
Uruguay

What's New at LAHT?
Follow Us On Facebook
Follow Us On Twitter
Most Viewed on the Web
Popular on Twitter
Receive Our Daily Headlines


  HOME | Business & Economy (Click here for more)

Economists: Catalonia Political Uncertainty Could Have Mid-Term Effects

BARCELONA – The uncertainty over a possible unilateral declaration of independence which continued to loom Saturday has hit the Catalan economy hard and could be harming its business fabric – mainly made up of SMEs – to a point of no return in the mid-term, various economic analysts have told EFE.

The transfer of corporate headquarters out of Catalonia by companies like CaixaBank and Banco Sabadell, apart from reputed companies from various sectors, has caused concerns due to its symbolic value and a visible cascading effect.

“Those who had planned to invest in Spain are now rethinking it and some of them are already mulling other countries because investments require legal certainty and peace, and they don’t find it here. This is happening,” lawyer and economist Jacint Soler Padro told EFE.

Soler Padro, who heads the Catalonia Civil Society Foundation predicts “an economic catastrophe” for Catalonia and Spain if the current uncertainty is not resolved.

Despite acknowledging that the shifting of company headquarters doesn’t affect the economy directly, he said that it does signal a sense of malfunctioning and mistrust.

Soler Padro, ex-president of the La Seda company and an ex-councilor of the Barcelona city council during the ’70s, said that if political stability is not re-established shortly, the economic disturbances could also start affecting families.

Juan Ignacio Sanz, a professor of law and a banking specialist at the ESADE business school, said that the exit of company headquarters from Catalonia could have collateral effects because this action spills over to other businesses related to corporate life, such as consultancies and auditors.

The professor said that after the departure of big and small banks, Barcelona has stopped being a financial hub, one of the aims of the city in the ’90s when the city could have been called a world leader in international business meetings.

Ignacio Sanz said that even if the political situation stabilizes, companies will take at least 3-5 years before considering a return.

The current instability is also affecting small and medium-size enterprises, which make up the majority of Catalan businesses, according to entrepreneurs contacted by EFE.

A small-time businessman of Barcelona, running a fire-prevention installation and maintenance firm, said that he has noticed effects of the political climate on his business.

“Decisions as small as renewal of extinguishers are being frozen, even though they are obligatory, in the wait to know what will happen,” he said on condition of anonymity.

Roberto Ruiz, another businessman from Barcelona who works in the traditional processing of olives – making green olive paste – said that he is getting progressively less orders from the rest of Spain.

“There is no active boycott of our products, but an unfair attrition and rejection towards Catalonia,” Ruiz said, adding that his small family business was in danger due to falling sales coinciding with the provincial government’s independence bid.

 

Enter your email address to subscribe to free headlines (and great cartoons so every email has a happy ending!) from the Latin American Herald Tribune:

 

Copyright Latin American Herald Tribune - 2005-2015 © All rights reserved