Political independence … monetary dependence: the procés of Catalonia derails in the use of the euro

Political independence … monetary dependence: the proces of Catalonia derails in the use of the euro

MADRID, Sept. 13. (Bolsamania.com/BMS) .- “The currency is the euro”. Exposing the official position of the Catalan Government, ERC president and vice president of the Generalitat, Oriol Junqueras defended in ‘LaSexta’ the ‘single currency’ will remain the currency to be used in an independent Catalonia. And it’s not impossible … but it is only an unlikely monetary agreement with Europe will avoid the risk that this decision causes a shortage spiral euros, leaking tanks and ‘playpens’.
The question was specific: “What currency we who live in Catalonia?”. Formulated one of those invited to participate in the program ‘Goal’. And Junqueras said: “The currency is the euro because the scope of monetary circulation is the euro area. In fact, there are countries within the European Union (EU) do not have the euro as currency and there are others that are out that they do have. We, yes we will be inside, obviously we keep the monetary area “.
Reply Junqueras, which expresses the official position of the Government of Carles Puigdemont and was already contained in the ‘White Paper on National Transitional Catalonia’, is coming down on one of its fundamental premises, which states that Catalonia will follow within EU. Brussels has already warned that an independent Catalonia would remain outside the EU for breaking the law. President of the European Parliament, Antonio Tajani, remembered last week in a letter to the Spanish MEP Beatriz Tejera. And EU membership is a prerequisite to join the euro condition. Or what is the same, to belong rightfully to the euro club must first be a member of the EU, with a unilateral declaration of independence would leave Catalonia outside the EU and the euro at the same time consequences that despite the warnings, the Catalan authorities are reluctant to admit that are coming exposing the Government of Mariano Rajoy.
Without that premise – “we, yes we are inside” – in his favor, Junqueras and the Government itself are right when you refer to there territories where the euro is used without the EU. Just as there are countries that adopt the US dollar as official currency, and therefore ‘dollarized’ economy, the euro can be used as currency outside the euro zone, in which case ‘euriza’ economy. A report by the European Central Bank (ECB) in 2012 defined the ‘euroisation’ or ‘dollarization’ as “a situation in which a significant share of the assets and liabilities of residents are denominated in a foreign currency which has legal status issue. ” That is, where the euro is the basis of economic and financial activity in the country.
Although from the Govern he insists that despite messages from Brussels, follow within the EU and the euro, no doubt that otherwise will continue using the euro. Hence the hue mentioned Junqueras also reflected in the ‘White Paper’, that no matter what the Catalans continue charging, paying and living in euros.

Currently, there are six areas that handle the euro currency but do not belong to the EU or the Eurozone. They are divided into two blocks. On the one hand, those who because of their size and geographic integration and trade used other national before coins and then signed a monetary agreement with the EU to switch to using the euro, as is the case of San Marino, Monaco, Vatican City and Andorra . And secondly, which they adopted the euro as their currency unilaterally, as Montenegro and Kosovo did.

But both alternatives have their complications for the aspirations of Catalonia. Sources consulted by ‘Bolsamania’ recalls that the agreements signed with San Marino, Monaco, Andorra and Vatican City have their origin in these countries or us


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