Spain is desperately trying to halt a drive for independence in Catalonia that threatens to derail its economy and plunge Europe into chaos. Catalan officials have warned they could declare independence from Spain within days after Madrid interfered in an independence referendum on Sunday. Related: Spain loses 20% of its economy if Catalonia splitsCollision courseThe fallout could be much worse if both sides take a hard-line approach. If Catalonia were to declare independence, Spanish Prime Minister Mariano Rajoy might react by imposing direct rule on Catalonia, which currently maintains a degree of autonomy. Catalonia accounts for nearly a fifth of Spain's economy, and it leads all regions in producing 25% of the country's exports.

Source: CNN October 04, 2017 17:03 UTC