Spain’s Minister of Economy encourages companies to return to Catalonia

Spain’s Minister of Economy, Luís de Guindos, has encouraged companies that moved their headquarters outside of Catalonia to return. Affirming that the application of Article 155 and the calling of early elections has generated a “positive” response in the markets, the minister stated that Catalonia’s growth is back on the same track reflected by previous quarters.

De Guindos said that there is no reason either for the boycotting of products, or the outflow of deposits as an “environment of tranquillity and normality has been recovered.” For this reason, he said more companies don’t have to move their headquarters elsewhere.

According to him, the political crisis will not be noticeable in Spain’s GDP statistics for the fourth quarter of the year. “The data guarantees that the annual growth forecast of 3.1% will be met,” he said. However, he pointed out that there will be an impact on the Catalan economy.

 The effects of Article 155

De Guindo argued that the Spanish government’s imposing of direct in Catalonia, with the application of Article 155, and the forcing of early elections by Spanish president Mariano Rajoy having sacked the Catalan government, had a positive effect on markets.

“The return to legality and the calling of elections has generated a very positive reaction in the markets that is compensating for the drop on Friday,” he said. For this reason, the minister believes there is no need for companies to continue moving their headquarters outside of Catalonia. He even went a step further and encouraged companies that have already left to return to the country as there is already a “peaceful environment that guarantees the application of legality,” referring to the early elections.

He stated that contact has been made with senior officials of the Catalan government regarding the application of Article 155, noting that there has been no “incident” thus far. The Spanish Minister of Economy believes, he said, that Catalan officials will abide.

“I am convinced,” he emphasized, “that there will be collaboration because of the professionalism of the officials of the (Catalan) government.”

Denying that the application of Article 155 in Catalonia is an “intervention” of the government and autonomy, he said it is a “necessary action to return to legality and the constitutional framework.”