Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Here’s Why Catalonia Has Put The EU In Danger

Politics / European Union Nov 03, 2017 - 03:32 PM GMT

By: John_Mauldin

Politics

BY JACOB L. SHAPIRO : Catalonia is vying to become Europe’s newest nation-state, but this is a battle Catalonia ultimately can’t win.

Only 51.8% of members in the Catalan parliament supported the independence declaration. That means even Catalans themselves are divided over whether Catalonia should secede from Spain.


Spain has threatened to do whatever is necessary to maintain the rule of law in Catalonia, and it has both the will and the means to follow through.

Catalonia also has very little international support it can depend on. Even so, the Catalan revolt of 2017 will have ramifications in Spain and in Europe that will be felt for generations to come.

For many observers outside of Europe, the Catalan issue came out of left field. But no one should be surprised that Catalan independence has become a major issue—it has been for many centuries now.

A Product of Spain’s Geography and Catalonia’s Unique History

The geography of Spain is immensely diverse. (In his recent exclusive e-book, The World Explained in Maps, George Friedman explained the balance of power in Europe using maps. Download it here.)

The northwest is rainy and faces the Atlantic. The center has historically been dry and poor. The northeast—where Catalonia is located—is fertile and faces the Mediterranean. The south has its own unique climate and spent many centuries under Muslim rule.

These realities helped create unique cultures and political economies that have proved remarkably resilient over centuries, despite best efforts to subsume them under Spanish nationhood.

The Catalan declaration also came out of Catalonia’s history.

There has been a uniquely Catalan political consciousness since the Middle Ages. When Ferdinand II of Aragon and Isabella of Castile married, their rule was not absolute. It was a bargain between the monarchs and the regions comprising their dominions, many with their own constitutions.

Taxes might well have flowed to the crown, but the crown in turn respected the autonomy of its regional subjects. The players often changed, but “Spain” was always a grand bargain between disparate regions and distinct peoples, not a coherent national entity.

Catalonia’s Victory Would Spark a Wave of Independence Movements

This explains why Spain has reacted with such force to the Catalan regional government’s moves.

Catalonia is just one of 19 autonomous communities in Spain. Basque Country, with its own language and unique culture, has also been vying for independence. And as recently as the 1990s, Basque separatists carried out terrorist attacks in Spain in support of their cause.

If Spain does not crush Catalonia’s independence movement now, it could open a Pandora’s box, with other regions demanding more autonomy or even separation, and Spain can’t allow this to happen.

Madrid, therefore, needs to assert direct control over Catalonia; anything less would give the appearance of Spain abdicating its responsibility to its people and its constitution.

Both sides have been hurling accusations of illegal conduct at each other.

The Spanish constitution is silent on the issue of independence referendums, but the Spanish government and Spain’s Constitutional Court view the Catalan regional government’s activities as illegal.

The Catalan government viewed the violent Spanish response to the vote as illegal. The Catalan government also thinks what it is doing is in keeping with the spirit of the European Union, founded as it was on the idea of national self-determination.

The situation has progressed to the point that the legalities and illegalities are irrelevant. The rule of law exists only in a political community where at least the vast majority accept it.

When there is a fundamental disagreement about what the law is and who gets to enforce it, stability vanishes. Then life goes back to being nasty, brutish, and short, with victories determined not by persuasive argument but by monopoly of force. 

Europe Is in a Lose-Lose Situation

This is where things get complicated for the European Union.

On the one hand, the EU remains steadfastly in support of its member state, Spain. But Spain will now have to use force to maintain its writ in Catalonia. That will put the EU in a lose-lose situation.

It can support a member state using force to quell a political rebellion that seeks the very thing the EU was designed to protect: national self-determination. Or it can support the right to self-rule for the people of Catalonia, which would undermine the position of the Spanish government.

How Spain and the EU respond to Catalonia will set the tone for how the EU will respond to separatist or autonomy movements in places like Scotland, northern Italy, or other regions with dormant nationalism that may bubble to the surface.

2017 will be the year that the EU supports a government in putting down a movement for national self-determination on the European continent. Most, if not all, EU countries will support the use of force this time, since no country wants its own territorial integrity challenged.

But condoning the use of force in this context takes the EU to a dangerous place. The EU was built around economic prosperity and was designed to ensure peace for Europe’s nations. If the EU can’t guarantee either of those things, it will become irrelevant or unrecognizable.

Slowly but surely, Europe is returning to history—and the suppression of Catalonia is a recurring chapter in that history.

Grab George Friedman's Exclusive eBook, The World Explained in Maps

The World Explained in Maps reveals the panorama of geopolitical landscapes influencing today's governments and global financial systems. Don't miss this chance to prepare for the year ahead with the straight facts about every major country’s and region's current geopolitical climate. You won't find political rhetoric or media hype here.

The World Explained in Maps is an essential guide for every investor as 2017 takes shape. Get your copy now—free!

John Mauldin Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in