Economic impact of 'Catalexit' could affect the likes of Volkswagen and Nestle

By Johan De Mulder

A number of multinationals will be keeping a keen eye on proceedings in Spain ahead of Sunday's proposed Catalonia independence referendum.

The country's government, led by Prime Minister Mariano Rajoy, are pushing aggressively for the secession vote to be cancelled, with Catalonia's economic department raided on a number of occasions.

If 'Catalexit' does go ahead and the Catalan natives vote for independence, however, then some companies with significant operations in the region could be affected.

See also:


Volkswagen has three sizeable plants in the region for its SEAT brand, employing over 14,000 workers, while US conglomerate Cargill has its Spanish headquarters in Barcelona, as well as several plants in the wider area.

Nestle and Airbnb also have bases there and experts believe the economic uncertainty could match that of the United Kingdom following the Brexit vote.

"As with Brexit, we believe that any Catalexit would plunge the region into a long period of uncertainty and would most probably be negative for the private sector," said ING economist Geoffrey Minne.

Recent research by El Pais also revealed that three out of four directors of Spanish businesses believe that independence would be detrimental to the national economy.

Share

Featured Articles

Meet the COO: Brook Sims of MAC Diversity Recruiters

Passionate about helping others find their voice, diversity leader and COO Brook Sims talks powerful leadership, diverse teams and being a change agent

Best business books to improve leadership strategy

From strategic guides to inspiring CEO memoirs, these new books dish up plenty of principles, strategies, and anecdotes to help you become a better leader

Shoplazza founder and CEO Jeff Li, ex Baidu, on leadership

Named in Fortune China’s 40 under 40 for 2022, former Baidu head Jeff Li is the entrepreneurial founder and CEO of ecommerce platform Shoplazza

The office shifts to new way of working – workplace special

Leadership & Strategy

Trailblazer: Clorox's DEI leader Shanique Bonelli-Moore

Sustainability

The inspirational CEO story – Dean Forbes of Forterro

Leadership & Strategy