October 25, 2017 / 8:55 AM / 2 years ago

An independent Catalonia would be out of the EU: economy minister

Spain's Economy Minister Luis de Guindos speaks during an interview with Reuters at Economy Ministry in Madrid, Spain October 5, 2017. REUTERS/Sergio Perez

MADRID (Reuters) - An independent Catalonia would be forced out of the European Union and euro area which would directly hurt the regional economy, the Spanish economy minister said on Wednesday.

“It’d be out of all the treaties, 70 percent of its gross domestic product would be subject to tariffs and physical borders. It would be out of the euro zone and the banks wouldn’t have ECB coverage ... it would have to create its own currency which would be very depreciated,” Luis de Guindos told parliament on Wednesday.

Such a depreciation would lead to an estimated 25-30 percent drop in regional economic growth, elevated inflation and a doubling of unemployment rates, he said.

Reporting by Paul Day; Editing by Jesus Aguado

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