politics
Report finds future Catalan state solvent
Catalonia's poor creditworthiness currently places it alongside the likes of Costa Rica, Guatemala and Hungary in the international solvency rankings. Its BB credit rating means it faces major ongoing uncertainties to adverse business, financial and economic conditions, and prevents the Generalitat from accessing international financial markets, making it dependent on the financial decisions of the Spanish government. The main reason is that the Catalan government does not have the power to levy its own taxes or independently manage the resources generated by the Catalan economy.
Yet, a report from the Col·legi d'Economistes de Catalunya concludes that an independent Catalonia would move up the international ranking to an A+ rating, with a strong capacity to meet financial commitments The report is by the economists Joan Elias and Joan Maria Mateu. To discover what the credit rating of a Catalan state would be, the report evaluates the situation of five areas: institutional structure, economic structure, exterior sector, public finances and monetary policy.