GETTYCatalonia's desire for independence hurts Madrid
While political unrest remains in the disputed region following the unofficial vote to leave, the area is now suffering from an economic fall-out from the political unrest.
Catalonia makes up a fifth of Spain’s GDP and has the highest regional number of business.
Madrid has already revised down Spain’s growth forecast for 2018 from 2.6 per cent to 2.3 per cent due to the referendum.
Daniel Lacalle, chief economist at fund manager Tresses, told The Financial Times: “Companies in Catalonia have frozen their investment decisions and hiring decisions due to the uncertainty.”
Catalonia has suffered a decrease in the number of tourists, seriously damaging the local economy.
This has resulted in the loss of 15,000 jobs in October according to Spain’s Ministry of Employment - higher than any other region in Spain.
The referendum has also resulted in a mass exodus of 2,000 companies which have moved their headquarters out of Catalonia due to the risk of the region leaving both the EU and Spain.
CaixaBank and Sabadell, the region’s two largest banks left Catalonia as it became increasingly obvious that this move was having a negative effect on deposits.
The political fall-out continues to rage over the controversial vote. Catalonian officials have shown both Spain and the EU they are determined for independence.
If we allow Catalonia to separate, others will do the same.
Despite Spain calling out the referendum as illegal, the regional government, two-thirds of regional mayors and tens of thousands of activists supported the decision.
Even the 17,000 regional police force defied orders from the central government to stop the poll.
However, the separatist move did not win any support from foreign countries and a unusually quite EU.
A nervous Jean-Claude Juncker, the European Union president, said: “If we allow Catalonia to separate, others will do the same.”
Mariano Rajoy, Prime Minister of Spain, hit back against Catalonia after winning senate approval to use extraordinary constitutional measures to take control over the region.
Once this proposal was passed the entire Catalonia government was removed.
The separatist politicians decided the best way to combat these actions from the central government is to run in the regional election on December 21.
The now ousted leader of Catalonia, Carles Puidgemont originally headed to Brussels to try and lobby support from the European policymakers.
Ater Spain issued an international arrest warrant Mr Puidgemont and his four fellow ministers themselves in to Belgian police.
They were soon released and Mr Puidgemont continues to declare himself the region’s president.