Apart from what will happen with the Basque country, the (pacific) struggle for autonomy in similar "States" like in Catalunya will be outdated before a new treaty is even signed. Rules can originate from many areas, but the political rules will never cease to decrease. The government is the number one issuer of rules, and only for that reason, never a popular adversary for business. Remember what happened with the Economic and Monetary System (EMS); the political rules were not strong enough to compete with the financial market-rules. That is the problem with political rules, they often lack credibility and will be "overruled" by the financial markets. Why would someone want to be more independent? If you are young and you think you can stand up for yourself you are free to leave your parents (at some age). Hopefully the family ties are strong enough. Economic security (autonomy) is however a (critical success) factor that needs to be in place in order this separation would function. Those that "feel" strong are the first to take such a step. They should not forget that there are economic down times when you would be happy to call in on your parents. The first regions demanding to be more independent feel they are indeed the strongest. Maybe even "better". Like Catalunya and The Basque country. But, now back to the rules. Investors are not happy with them. What would you do as an investor if you enter "Spain," you have prepared for a Spanish interpreter to help you, and all of a sudden they require you to administer your business not only in the Spanish language but also in the Catalan language (a mix between Spanish and French). Financial markets demand openness. You scare a business when you invite them to join, but where there is no way back. Rules a scary and more rules are frightening. When the independency discussion reaches the top, close to a deal, the market is already looking for new opportunities. There are plenty of them. |
