Catalonia: Pro-independence parties agree Mr Puigdemont as President – Goldman Sachs

By FXStreet FXStreet (Delhi) – Lasse Holboell Nielsen, Research Analyst at Goldman Sachs, notes that against the backdrop of difficulties in forming a new Catalan government and facing opposition from the CUP party against his re-election as President, Artur Mas stood down over the weekend, nominating Carles Puigdemont as alternative candidate.

Key Quotes

“Mr Puigdemont, mayor of Girona, was appointed as Catalan President at the conclusion of a debate in the Catalan Generalitat (Parliament). The appointment and support from across pro-independence parties will see the Catalan pro-independence campaign retain momentum, which it had been at risk of losing with the prospect of repeat regional elections.

Mr Puigdemont’s appointment has implications for Spain’s national government given the indecisive outcome of the national election on December 20. It likely favours the centre-right PP either by placing the opposition Socialist party (PSOE) under some pressure to agree to support the PP (and the re-appointment of PM Rajoy) to resist moves towards Catalan independence or, should repeat elections take place, it may see additional support for the PP.

Significant uncertainties continue to surround the likely form of Spain’s next government. That said, the likelihood that this will be led by the PP, as we expected ahead of …read more

Source:: FX Street