Catherine Boyle, CNBCNovember 26, 2012 16:59
The results of elections in Catalonia, potentially a break-away state from Spain, seemed to assuage market concerns about the region on Monday. Spain’s IBEX declined just 0.3 percent on Monday, in line with broader European benchmarks. Yet this market confidence may be misplaced. While the Convergència i Unió (CiU) party which has become the best-known cheerleader for a referendum on whether Catalonia should stay as part of Spain lost some of its voters, they have been deserted for more extreme parties like the Esquerra Republicana. Close to two-thirds of the votes cast were for parties which want a referendum on Catalan independence.