The Spain government has temporarily put down the Catalan crisis by sacking Catalonia's government.
But the demand for independence is indicative of a larger concern and needs a well thought out response.
What is the recent move?
Spain's Prime Minister Mariano Rajoy has struck down the recent referendum on independence for Catalonia.
He has sacked Catalonia’s President and dismissed its parliament, after the Catalan Parliament declared itself an independent nation.
The government has also imposed a direct rule on the region.
It has also rescheduled the elections and has called for a snap election in the region.
Why is Catalonia significant for Spain?
Economy - Catalonia accounts for a quarter of Spanish exports.
It has been the second-largest recipient of foreign direct investment in the recent years.
It accounts for almost a fifth of Spain’s GDP, the fourth-highest among the country’s 17 regions.
The region also attracts more tourists than any other region in Spain (Between Barcelona and the famous Costa Del Sol).
If Catalonia breaks away, the Spanish GDP may possibly fall by a quarter.
Employment - Though debt-driven austerity in Spain has had its impact on Catalonia, its unemployment rate is still below the national average.
If Catalonia departs, Spain's unemployment could even double.
Besides, Catalonia is one of Spain’s more prosperous and culturally vibrant regions offering lot many opportunities.
What lies ahead?
The government may have curbed the secessionist impulses of Catalonia, but only temporarily.
The crisis has now reached a dangerous level as independence supporters have called for a campaign of disobedience.
Independence supporters claim that breaking away will be financially more secure as it will not have to pay taxes to Madrid.
The concerns in Catalonia are indicative of the demand for greater self-determination for regions worldwide.
Given this, heavy-handed approach to defuse tensions will only complicate the peace process.
E.g. Disallowing Carles Puigdemont, the Catalan President and his pro-independence colleagues from contesting the elections will only exacerbate the tensions.
All of this suggest the need for more constructive redistributive policies and sensible negotiations.
