Spain’s prime minister has proposed a referendum on whether Catalonia should be given greater autonomy, in a bid to dampen tensions between Madrid and Barcelona.
While stopping short of offering the wealthy region a vote on full independence, this proposal will still be seen as an olive branch for many in Catalonia who simply want to see more devolved regional powers.
This comes in the wake of a political crisis last year when the Catalan government attempted a unilateral declaration of independence.
Catalonia, which has its own distinct language, was granted autonomy under Spain’s 1978 Constitution adopted three years after the death of longtime dictator Francisco Franco.
In 2006, a statute granting even greater powers to the northwestern region, boosting its financial clout, was approved by the Spanish and Catalan parliaments. And in a referendum at the time, over 73% of voters in Catalonia approved it.
But in 2010 Spain’s Constitutional Court struck down several articles of the charter, among them attempts to place the distinctive Catalan language above Spanish in the region and a clause describing the region as a “nation”. The ruling sparked a rise in support for independence in Catalonia, which is home to some 7.5 million people and accounts for about one-fifth of the Spanish economy.
Catalonia is an autonomous community of Spain in the north-east end of the Iberian Peninsula, designated as a nationality by its Statute of Autonomy. It has four provinces: Barcelona, Girona, Lleida, and Tarragona. The capital and largest city are Barcelona, which is the second most populated city in Spain.
The Catalan region has long been the industrial heartland of Spain, with textile and shipbuilding, and more recently, finance, services, and technology. Barcelona has a thriving start-up culture and plays host to the annual Mobile World Congress, where the bleeding edge of technology is on display.
Catalonia is one of the wealthiest regions of Spain. It accounts for 20.07% of the Spanish GDP. Secession would, therefore, cost Spain almost a fifth of its economic output, and trigger a row on how to carve up the €836 billion of the national debt.
If Catalonia were to secede from Spain, it would have a GDP of $314 billion, according to calculations by the Organization for Economic Cooperation and Development (OECD). That would make its economy larger than Singapore and South Africa and on a par with Israel. Its GDP per capita would be $35,000, which would make the average citizen of the Catalonian state wealthier than his counterparts from South Korea or Italy.