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the the problem uh not just in Spain but
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in many other countries with uh
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separatist uh movements uh is a real one
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and uh you know there is a problem in
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Canada there is a problem in Belgium as
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you know with potential split of the
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country there's a process now in motion
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in the UK uh for a potential referendum
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uh in Scotland and uh then in Spain
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there's uh essentially two uh regions
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right so there's a uh an anacronistic
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side to this of course right because in
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Europe uh you know the movement in terms
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of uh sovereignty has been away from the
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member countries and to Brussels or to
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Frankfurt over the last 10 years but at
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the same time we see this these other
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you know movements right within
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countries and uh you know I think this
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adds to the uncertainty this adds to the
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uh you know um the reluctance of foreign
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investors to come in. Remember that most
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of the bonds that the Spanish government
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is selling these days uh are being
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acquired are being bought by by domestic
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banking institutions. This is a very
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dangerous aspect of the situation which
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is that uh you're having more a greater
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and greater proportion of the uh
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sovereign debt being owned by domestic
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banks. So in other words, there's this
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massive increasingly massive
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concentration of risk right uh within
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the uh financial sector in each of the
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countries affected by the problem. In
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Italy we see the same development. So as
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to the uncertainty I can understand the
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strategy by the uh by Arur Mas who is
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the head of government of the autonomous
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government in Catalonia. I mean he
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perceives the situation as being one in
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which uh you know he can advance his
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goals. uh he perceives that the
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government in Madrid is against uh you
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know the wall and uh he perceives that
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it's the moment you know to um to
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reassert those claims and Catalonia you
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know has claims right uh that are based
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on history and culture and language and
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uh the same does Scotland and the same
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does Quebec right the timing is not
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great I don't think for the global
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economy or for financial markets because
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this is just going to add to the
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uncertainty and the volatility uh but
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that's the reality And uh I guess we
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need to be prepared for it.
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