Catalan parliament approves motion to start secession

Meeting in an extraordinary session, the parliament of Spain´s north-eastern region of Catalonia on 9 November approved a text calling for the start of a political process to break-away from Spain and create a Republic.

The motion was approved with the backing of the two main pro-indepence parties in the chamber, Junts pel si (United for a yes) and CUP (United popular movement).

Some observers expected the motion to be anulled by the country´s Constitutional court, although the text approved by the region´s lawmakers on Monday stated they would not accept any such ruling, particularly from the judges in Madrid.

However, last week the court decided not to block the vote.

A slim majority of Catalans were not in favour independence, according to the results of a poll carried out by Spanish survey-compiler Metroscopia on 30 October, Alberto Gallo, head of macro research at RBS said in a research note e-mailed to clients on Monday afternoon.

"Support could decline further if households and businesses perceive an independence move as damaging to the region’s economic prospects and Euro membership.

"We continue to see a low chance of a separation. As the 40th anniversary of General Franco’s death approaches the independence debate could intensify. In our view, the pro-independence parties are preparing for a push to achieve larger concessions after the 20 December general elections, once negotiating partners are known. We remain long Spain as despite the political headlines, economic fundamentals remains strong. We are, however, underweight EM exposed Spanish names such as Santander, particularly on its exposure to Brazil," he said.

As of 13:02 and following the vote in the Catalonian parliament, Spain´s Ibex 35 was trading just 0.29% lower at 10,423.40.