Catalonia Geography: It is an autonomous region with capital Barcelona located in Northeast region of Spain. It has its own constitution and unicameral Parliament called “Parliament de Catalunya” It is bordered by France and Andorra to the north, the Mediterranean Sea to the east, a the Spanish autonomous communities of Aragon to the west Valencia to the south.  Catalonia consists of four provinces: Barcelona, Girona, Lleida, Tarragona.

Significance of Catalonia in Spain’s economy: The Catalan region has long been the industrial heartland of Spain first for its maritime power and trade in goods such as textiles, but recently for finance, services and hi-tech companies. It is one of the wealthiest regions of Spain - it accounts for 19 per cent of Spain’s GDP, equal with the Madrid region. Madrid, however, has a higher per capita GDP. Secession would therefore cost Spain almost 20 per cent of its economic output, and trigger a row about how Catalonia would return 52.5 billion euros of debt it owes to the country’s central administration. It would have a gross domestic product of $314 billion (£195bn), which would make it the 34th largest economy in the world. That would make it bigger than Portugal or Hong Kong. Its GDP per capita would be $35,000, which would make it wealthier than South Korea, Israel or Italy. And Catalonia's contribution to the Spanish is twice that of Scotland’s to the UK.

Facts about Catalonia: 7.5m: The population of Catalonia makes up 16.1pc of Spain’s 46.6 million 95 per cent: Proportion of the population that understand Catalan, the region’s primary language. An estimated 10 million speak Catalan worldwide - primarily in Catalonia, the Valencian Community, the Balearic Islands and France 9th: Catalan’s ranking on the list of the most widely spoken languages in Europe. It is not, however, on the EU’s list of 24 official languages €209bn: Catalonia’s GDP in 2014. Spain’s was €1 trillion €65.1bn: Catalonia’s annual exports to other countries (double that of any other Spanish region) 13.2 per cent Catalonia unemployment rate in June 2017 is below the national average of 17.2 per cent 8 per cent: The amount of GDP the Catalan Government has said it would claw back if it didn’t have to hand over its taxes to the Spanish Government

Why referendum? Latest developments: 1. Because of Financial matters i.e. Catalonia region is highest contributor for Spain tax revenue. But the development done is less in this region. 2. Lack of respect to Catalonia’s language and culture by banning the use of Catalona language officially. Latest developments: Spain declared referendum as unconstitutional. High tensions between Catalonia and Spain governments Police attacks on Catalonians’ during referendum. The final results showed 90% of the 2.3 million people who voted backed independence. Turnout was 43%. There have been several claims of irregularities, and many ballot boxes were seized by the Spanish police. Pro-Spain marchers attack Catalan referendum supporters. Thousands rally for Spanish unity

Impact due to Catalonia’s independence:  Spain losing its major revenue share  Need to look for alternative area for business and industries development centers  Catalonia if declared independent need to quit European Union  It need to work on separate trade pacts with rest of the world. Way forward:  European countries suggested for mediation talks.  Wait and watch for the declaration by both Spanish and Catalonia governments