MADRID – The Latest on Catalonia's independence bid (all times local):
Credit ratings agency DBRS is warning that the uncertainty surrounding Catalonia's independence bid is hurting the region's economy and could become a drag on Spain's economy and weigh on public finances.
DBRS says the political turmoil brought by Catalonia's standoff with the national government "is discouraging investment and tourism in the region."
With Catalonia representing about one-fifth of Spain's annual GDP, any slowdown in the region would bring consequences for the national economy.
The Spanish government has revised downwards its growth forecast for 2018 to 2.3 percent from 2.6 percent, largely because of doubts over Catalonia's future.
DBRS says the effects on the national economy will be "manageable," however, unless the crisis becomes protracted.
Spain's prime minister says the government's plans to take unprecedented control of Catalonia's key affairs and halt that region's push for independence are "exceptional" and he hopes they will not last long.
Mariano Rajoy told Parliament on Wednesday that the application of the Constitution's Article 155 is the "only possible" response to restore the region's legality, which he said has been liquidated by Catalan President Carles Puigdemont's push to secede.
Rajoy says he hopes the measures planned, including the sacking of Puigdemont's government and curtailment of Catalan parliament's powers, will be brief. He says they should end with regional elections that he hopes can be held as soon as possible but only once law and order is restored.
Spain's Senate is expected to approve the measures Friday.