Spain: Tensions building up before elections - ING

FXStreet (Delhi) – Geoffrey Minne, Economist at ING, note that tensions are reaching new heights before Sunday’s Catalan elections with both pro-independence and anti-independence camps are becoming vehement and vociferous.

Key Quotes

“Polls continue to show a small majority for the pro-independence movement. All in all, the pro-independence movement should have a small majority in the Catalan parliament (if polls’ results are confirmed) and, in this case, would certainly “proclaim unilaterally” the independence of Catalonia in the aftermath of the elections.”

“The game is not over as the Spanish government is ready to enter in the fight in refuting the process on a legal basis. A better option might be to open the door to discussion with the regional government and possibly to reach a compromise. However, we did not expect any player to reveal all his cards in the middle of the game.”