World Economy

Catalan Vote Jolts Spain Markets

Catalan Vote Jolts Spain MarketsCatalan Vote Jolts Spain Markets

Spain’s government borrowing costs surged and its stock market tumbled on Monday as investors weighed up the political fallout from the violent police crackdown on an independence vote in the wealthy region of Catalonia, Reuters reported. The euro also drifted lower against the dollar after local officials said 90% of voters favored secession in Sunday’s referendum, which Madrid declared illegal. That opened the door to a unilateral declaration of independence in a region that accounts for a fifth of Spain’s economy and whose tax revenues are crucial to the national budget. While many analysts expect the crisis to be resolved with an offer of more autonomy, they said the uncertainty could have an impact on the country’s economic growth.


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