1) Polls continue to point to a significant “yes” victory in a future referendum on independence in Catalonia.
2) If the Catalan government backs down from a referendum, even if the Constitutional Court declares it illegal, as it certainly will, it will pay a heavy price at the polls. Therefore, it is locked into holding a referendum, unless it can negotiate a sufficiently advantageous fiscal settlement with the Spanish state. A negotiated settlement averting a referendum remains the most likely outcome, although p<0.5.
3) Some Catalans think the Socialist Party of Catalonia, which is linked with the main Spanish opposition party (PSOE) and has been trying to straddle the self-determination issue, will implode soon over the issue.
4) Catalonia and Spain may both be more viable as separate states than together. Spain's political economy is dysfunctional. Catalonia’s would not be (the largest Catalan party is centrist with…
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