THE former top civil servant in the country has said that the stand-off in Catalonia gives an insight into how a no-deal Brexit will play out.
Gus O'Donnell, who campaigned vehemently against Brexit, said that the EU will seek to copy Spain's controversial tactics when dealing with a no-deal Brexit.
The former cabinet secretary said that the risks of a no-deal to Britain can be seen in the financial exodus and the disdain from EU officials towards the Catalan fight for independence.
This comes as tensions between Catalan separatists and Spain's central government are likely to come to a head today.
Spain has threatened to invoke Article 155 later today, which would deprive the Catalan region of autonomy and impose direct rule.
Speaking to Nick Robinson on BBC Radio 4, Mr O'Donnell said that the hostility between the two reveals how a Brexit no-deal will play out.
He said: "We have a live example in practice, in Catalan, they are voting on independence.
"You can see banks packing up, moving their headquarters out, companies exiting the region, because if they were to go indepedent, they would leave the EU with no deal.
"Most of their trade is with Spain, which would be thrown into doubt.
"The EU want nothing to do with them, and that will take its toll."
Mariano Rajoy, Spanish prime minister, is convening an emergency cabinet meeting today after the region’s leadership failed to rescind its threat to unilaterally declare independence.
Donald Tusk, EU Council president, was unequivocal on Europe’s non-role in mediating the crisis.
Antonio Tajani, president of the European Parliament, added: "No one in Europe will recognise an independent Catalonia."
Earlier this month, CaixaBank and Sabadell led a corporate exodus as economic chiefs looked to shield their businesses from the turmoil of a declaration of independence.
In response, supporters for Catalan independence made cash withdrawals from the banks this week, singling out lenders that have moved their legal domiciles out of the region.
Eva Marti, 42, a public worker said: "I’m here to protest -- it’s a symbolic amount.
"I’ve banked with CaixaBank for years and I’m surprised to see them withdraw from Catalonia at a time like this."
Oriol Mauri, another local resident, added: "These banks are traitors. They need to see that it's lots of us who are angry."