Catalonia: lengthy jail terms in event of formal declaration of independence - Scotiabank

Analysts at Scotiabank explained that the power struggle between Madrid and Catalonia continued over the weekend, with the central government announcing that it will remove the Catalan leadership and threaten lengthy jail terms immediately in the event of a formal declaration of independence. 

Key Quotes:

"The Catalan regional representatives are expected to respond this week. Absent any major confrontation, and any major data releases, the EUR has remained soft without falling significantly."

"It is worth noting that two of Italy’s wealthier regions voted for greater autonomy at the weekend. 

ECB policy decision Thurs may provide some line of sight on 2018 tapering."