Spanish Prime Minister Mariano Rajoy has condemned a planned referendum on the independence of Catalonia, as a senior independence movement leader warned Madrid that it faced an international backlash from investors.

Rajoy criticised the proposed vote, saying,

“I have not changed my opinion on the subject... There is and there will not be a referendum... It’s crazy what is being planned right now and it is deeply negative for Catalan society and Spanish society.”

German Chancellor Angela Merkel weighed in on the subject and backed Rajoy, stating,

"I can say that everything he has said in the past and which he repeats now seems very logical.”

The vote, which is currently planned to take place on the 9th of November, is widely expected to be blocked by Spanish authorities, with the country's Constitutional Court set to rule on its legality.

Speaking on the upcoming ruling, Oriol Junqueras, the leader of the Catalonia’s Esquerra Republicana party told the Financial Times in an interview,

“How can the constitutional tribunal say that it is illegal for citizens to vote? It just makes no sense . . . I believe the right to vote stands above the decisions of a political tribunal.”

Junqueras went on to warn Spanish authorities that blocking the planned vote may lead to a backlash from investors, adding,

“The Spanish state has €1tn of debt. This debt will have to be paid with our taxes, so I don’t believe that the best way for the Spanish state to meet its financial obligations is to clash with its own citizens.”

“If I was an investor I would be more calm knowing that there is an independent Catalonia that is ready to comply with its obligations than having a kingdom of Spain that is in confrontation with its own citizens."