Spain Economy Minister Luis de Guindos said independence would be harmful for Catalonia, adding that it would be illegal and that the Spanish government will enforce the law “perfectly” and respond firmly with prudence.
In theory, the Spanish government would have the legal option to send troops into Catalonia if the region decides to declare independence and it can also take direct control over the region.
Action Economics said that none of these solutions would ultimately solve the underlying issues, and it would likely also force the European Union to finally take a stance.
So far, the EU has taken a neutral stance, declaring this an internal matter for Spain. Guindos was trying to assure markets that Catalan lenders are solid and, indeed, the IBEX is managing to claw back some of its recent losses Thursday morning.