Bank of Spain warns Catalonia secession would mean euro exit

“I am very sceptical that a new Spanish government could offer a deal to Catalonia on holding a referendum”, Mas said in an interview with Reuters at the 16th Century Palau de la Generalitat regional headquarters.

Mas claims Madrid is orchestrating an intimidation campaign against independence.

“Spain and Catalonia simply have different priorities”, Elizabeth Castro, chairwoman of the worldwide Committee in the Catalan National Assembly, told Anandolu Agency. “In that respect it’s a possibility, a risk”, he said.

All polls so far point to a lack of majority in terms of number of votes for the pro-independence parties.

“If we get a clear and specific democratic mandate on September 27, things will change because in the end the independence depends on our will”.

If separatist parties fail to obtain an absolute majority in the Catalan parliament, Rajoy said his conservative Popular Party was open to forming an alliance with other parties that want the region to stay in Spain.

Catalonia has won a large measure of political and cultural autonomy since the end of the Franco dictatorship, which had repressed the region, including banning the use of the Catalan language.

Polls show pro-secession candidates could win a majority in the 135-seat Catalan parliament next Sunday.

The region’s independence drive has intensified over the recent years of economic crisis.

“(The separatists) are not more than us, but they will be if you don’t go and vote”, Rajoy said Sunday.

“Catalonia’s euro exit would be automatic”, Linde said during a panel discussion in Madrid on Monday.

Spain’s Catalonia region will be automatically booted out of the eurozone and its banks will lose access to European Central Bank facilities if it becomes independent from the rest of country, the Spanish central bank chief said yesterday.

Uncertainties and tensions over the election are affecting Catalan and Spanish banks, Linde said, echoing worries by major lenders that said Friday a split with Catalonia would be a serious threat to financial stability in the region.

Mr Linde added the central government could also impose capital controls on the banking system.

Madrid, however, has vowed to block any accession application from the Catalans.

Caixabank and Sabadell declined to make any comment.