Markets won’t ‘panic’ over Catalonia

Spanish government bonds and stockmarkets are not panicking over Catalonia because any secession by the region would have limited effects on Madrid’s finances and economy, a leading analytical firm has said.

Capital Economics in London said there is a good reason that Spanish bonds and shares haven’t been badly hit because the economic fallout would be limited.

“This makes sense to us. After all, even if Catalonia were permitted to secede at some point in the future, say, as a result of a ‘yes’ vote in a legal referendum following a revision of Spain’s constitution, it would probably be required to take on its share of Spain’s debt.