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28 Sep 2015
Spain – Catalonia elections add to uncertainty - Deutsche Bank
FXStreet (Delhi) – Research Team at Deutsche Bank, note that over the weekend was the Catalonia election where pro-independence parties Junts pel Si and CUP have won the majority of seats in parliament, but have fallen short of the required number of votes for majority which is adding to the uncertainty about its existence in Spain.
Key Quotes
“Junts pel Si has won just shy of 40% of votes along with 62 seats while CUP won 10 seats and around 8% of votes. That means pro independence parties have won 72 of the 135 seats in parliament, but just fallen short of the majority percentage of votes with 48%.”
“With the result counted for, DB’s Marco Stringa continues to believe that Junts pel Si will carry on with its pledge to declare unilaterally the independence of Catalonia in about 18 months unless the central government brings a binding referendum on independence.”
“Nevertheless, it’s set to be a demanding scenario from both a legal and political perspective, with perhaps a compromise centered on an overhaul of regional financing sometime in 2016 the most reasonable scenario.”
Key Quotes
“Junts pel Si has won just shy of 40% of votes along with 62 seats while CUP won 10 seats and around 8% of votes. That means pro independence parties have won 72 of the 135 seats in parliament, but just fallen short of the majority percentage of votes with 48%.”
“With the result counted for, DB’s Marco Stringa continues to believe that Junts pel Si will carry on with its pledge to declare unilaterally the independence of Catalonia in about 18 months unless the central government brings a binding referendum on independence.”
“Nevertheless, it’s set to be a demanding scenario from both a legal and political perspective, with perhaps a compromise centered on an overhaul of regional financing sometime in 2016 the most reasonable scenario.”