The push by Artur Mas, the president of Catalonia, for a referendum on the secession of the wealthy northeast region from Spain, could severely undermine confidence in Spain and add to a “massive concentration of risk,” according to Wharton management professor Mauro Guillen. Spain’s central government says it would be illegal for Catalonia to secede, but Mas already has asked the European Union to tell Madrid not to use the Spanish army to halt Catalonia’s push for independence. Guillen discusses the challenge in this Knowledge at Wharton interview.
Professor Guillen offers his thoughts about austerity and the chances for a bailout of Spain in this video: Spain Sputters as a Bail-out Moves Closer
He discusses the failure of European austerity and some possible solutions in this video: Searching for a Way Out of Europe’s Dead-end Austerity