Spain to sack Catalan government in bid to end secessionist crisis

Spain to sack Catalan government in bid to end secessionist crisis

By Isla Binnie and Julien Toyer

MADRID (Reuters) – The Spanish government will sack Catalonia’s secessionist leadership and force the region into a new election, it decided on Saturday, unprecedented steps it said were needed to prevent the region breaking away.

The plan, which requires parliamentary approval, is Madrid’s bid to resolve the country’s worst political crisis in four decades, but it risks an angry reaction from independence supporters, who planned street protests later in the day.

Outlining the cabinet’s decision, Prime Minister Mariano Rajoy said Catalonia, which accounts for a fifth of Spain’s economy, was already in worrying economic shape as a result of the regional government’s push for independence.

“We will ask the Senate, with the aim of protecting the general interest of the nation, to authorize the government … to sack the Catalan president and his government,” Rajoy told a news conference.

Spain’s upper house of parliament is scheduled to vote on the plan next Friday.

It is the first time since Spain’s return to democracy in the late 1970s that the central government has invoked the constitutional right to take control of a region.

Direct rule will give Madrid full control of the region’s finances, police and public media and curb the powers of the regional parliament after it allowed an independence referendum that Madrid declared illegal.

Rajoy said he did not intend to use the special powers for more than six months and he would call a regional election as soon as the situation was back to normal.

“Our objective is to restore the law and a normal cohabitation among citizens, which has deteriorated a lot, continue with the economic recovery, which is under threat today in Catalonia, and celebrate elections in a situation of normality,” Rajoy said.

Catalan President Carles Puigdemont, was due to deliver an address at 9 p.m. (1900 GMT) after meeting with his government, his office said. He was also due to join the protests in Barcelona.

Puigdemont made a symbolic declaration of independence on Oct. 10, and on Thursday he threatened to press ahead with a more formal one unless the government agreed to a dialogue.

The Catalan parliament is expected to decide on Monday whether to hold a plenary session to formally proclaim the republic of Catalonia.

Catalan media have said Puigdemont could decide to dissolve the regional parliament himself immediately after independence is proclaimed and call elections before the Spanish senate makes direct rule effective.

Under Catalan law, those elections would take place within two months.

UNSUSTAINABLE

Pro-independence parties said the move from the center-right government of the People’s Party (PP) showed the Spanish state was no longer democratic.

“The Spanish government has carried out a coup against a democratic and legal majority,” Marta Rovira, a lawmaker from Catalan government party Esquerra Republica de Catalunya, tweeted.

Anti-capitalist party CUP, which backs the pro-independence minority government in the regional assembly said: “Taken over but never defeated. Popular unity for the Republic now. Not a single step back.”

Catalan authorities said about 90 percent of those who voted in the referendum on Oct. 1 opted for independence. But only 43 percent of the electorate participated, with opponents of secession mostly staying at home.

The main opposition in Madrid, the Socialists, said they fully backed the special measures and had agreed on holding regional elections in January.

“Differences with the PP on our territorial unity? None!” said socialist leader Pedro Sanchez.

Rajoy also received the backing of King Felipe, who said at a public ceremony on Friday that “Catalonia is and will remain an essential part” of Spain.

The independence push has brought on Spain’s worst political crisis since a failed military coup in 1981 several years after the end of the Franco dictatorship. It has met with strong opposition across the rest of Spain, divided Catalonia itself, and raised the prospect of prolonged street protests

It has also led Madrid to cut growth forecasts for the euro zone’s fourth-largest economy and prompted hundreds of firms to move their headquarters from Catalonia. Rajoy on Saturday urged firms to stay in the region.

Madrid has insisted that Puigdemont has broken the law several times in pushing for independence.

“The rulers of Catalonia have respected neither the law on which our democracy is based nor the general interest,” the government said in a memorandum to the Senate. “This situation is unsustainable.”

Pro-independence groups have mustered more than 1 million people onto the streets in protest at Madrid’s refusal to negotiate a solution.

Heavy-handed police tactics to shut down the independence referendum were condemned by human rights groups, and secessionists accused Madrid of taking “political prisoners” after two senior independence campaigners were jailed on charges of sedition.

Hacking group Anonymous on Saturday joined a campaign called “Free Catalonia” and took down the website of Spain’s constitutional court.

Spain’s national security department had said on Friday it was expecting such an attack to take place, though nobody was available on Saturday to confirm it.

(Editing by Angus MacSwan and Robin Pomeroy)

Spain plans new elections in Catalonia to end independence bid: opposition

Spain plans new elections in Catalonia to end independence bid: opposition

By Sonya Dowsett and Inmaculada Sanz

MADRID (Reuters) – The Spanish government has secured opposition support for dissolving Catalonia’s parliament and holding new elections there in January in its bid to defuse the regional government’s push for independence.

The Socialists, the main opposition, said on Friday they would back special measures to impose central rule on the region to thwart the secessionist-minded Catalan government and end a crisis that has unsettled the euro and hurt confidence in the euro zone’s fourth-largest economy.

Prime Minister Mariano Rajoy, who wants opposition support to be able to present a united front in the crisis, has called an emergency cabinet meeting on Saturday to pave the way for Madrid establishing central control in the region.

The government on Friday would not confirm whether January elections formed a part of the package, with Rajoy saying only that the measures would be announced on Saturday.

However a government spokesman saw regional elections as likely. “The logical end to this process would be new elections established within the law,” said government spokesman Inigo Mendez de Vigo at a weekly government press conference.

It will be the first time in Spain’s four decades of democracy that Madrid has invoked the constitution to effectively sack a regional government and call new elections.

Rajoy wants as broad a consensus as possible before taking the step, which has raised the prospect of more large-scale protests in Catalonia, where pro-independence groups have been able to bring more than one million people out onto the streets.

Catalan leader Carles Puigdemont, a former journalist who is spearheading the secession campaign, has refused to renounce independence, citing an overwhelming vote in favor of secession at a referendum on Oct.1.

Catalan authorities said around 90 percent voted for independence though only 43 percent of voters participated. Opponents of secession mostly stayed home.

ECONOMIC CONFIDENCE HURT

Spanish courts have ruled the referendum unconstitutional, but Puigdemont says the result is binding and must be obeyed.

The prolonged standoff has caused hundreds of companies to move their headquarters outside Catalonia and prompted the Spanish government to cut its economic growth forecast. The region accounts for a fifth of Spain’s economy.

Later on Friday, Moody’s was scheduled to review Spain’s sovereign rating, days after warning that political tensions between Madrid and the rebel leadership in Catalonia were credit-negative for the sovereign.

In a test of investor appetite for Spanish stocks, housebuilder Aedas <AEDAS.MC> dropped over 6 percent in its debut on the Madrid stock exchange on Friday, although it later regained losses to trade close to its listing price.

The uncertainty surrounding the future of the region has rattled the euro. On Thursday, European Union leaders including Germany’s Angela Merkel and France’s Emmanuel Macron offered their support for Rajoy at an EU leaders summit in Brussels.

The EU says it will not act as a mediator and the crisis is for Madrid and Barcelona to resolve.

After Rajoy announces the direct control measures on Saturday, Spain’s upper house will have to approve them in a session which could take place on Oct. 27, a Senate spokeswoman said on Friday.

Actions could range from dismissing the Catalan parliament and government, to a softer approach of removing specific heads of department. Direct rule from Madrid would be temporary while regional elections are held to form a new government.

Madrid on Friday stressed the move was not about taking autonomy away from Catalonia but temporarily imposing direct rule until a government was elected that would act within the law.

Socialist politician Carmen Calvo, a member of cross-party talks to establish what measures the government should take to impose direct rule on Catalonia, told TVE state television that January regional elections would form part of the package.

She gave no further details apart from saying the Socialists wanted a light-touch intervention.

(Additional reporting by Raquel Castillo and Isla Binnie; Writing By Sonya Dowsett; Editing by Richard Balmforth)

Spain takes step toward direct rule over Catalonia’s independence move

Spain´s Prime Minister Mariano Rajoy attends a cabinet meeting at the Moncloa Palace in Madrid, October 11, 2017. Moncloa handout via REUTERS

By Blanca Rodríguez and Sonya Dowsett

MADRID/BARCELONA (Reuters) – Spanish Prime Minister Mariano Rajoy took the first step on Wednesday toward suspending Catalonia’s political autonomy and ruling the region directly to thwart a push for independence.

He demanded that the regional government clarify whether it now considered itself independent following a speech by Catalan president Carles Puigdemont on Tuesday night.

This requirement is a necessary step before triggering Article 155 of the constitution, which would allow Madrid to suspend the region’s political autonomy.

Rajoy’s move could deepen the confrontation between Madrid and Catalonia but it also signals a way out of Spain’s biggest political crisis since a failed military coup in 1981.

The prime minister would be likely to call a snap regional election after activating the constitutional mechanism allowing him to do so.

Puigdemont made a symbolic declaration of independence from Spain on Tuesday night but then immediately suspended it and called for talks with the Madrid government.

“The cabinet has agreed this morning to formally request the Catalan government to confirm whether it has declared the independence of Catalonia, regardless of the deliberate confusion created over its implementation,” Rajoy said in a televised address after a cabinet meeting to consider the government’s response.

Without giving a specific deadline for the Catalan government to reply, Rajoy said: “The answer from the Catalan president will determine future events, in the next few days.”

It is not yet clear if and when the Catalan government would answer the requirement but it now faces a conundrum, political analysts say.

If Puigdemont says he did declare independence, the government would likely trigger Article 155. If he says he did not declare it, then far-left party CUP would likely withdraw its support to his minority government.

“Rajoy has two objectives: if Puigdemont remains ambiguous, the pro-independence movement will get more fragmented; if Puigdemont insists on defending independence then Rajoy will be able to apply Article 155,” said Antonio Barroso, deputy director of London-based research firm Teneo Intelligence.

“Either way Rajoy’s aim would be to first restore the rule of law in Catalonia and this could at some point lead to early elections in the region”.

DIALOGUE CALL DISMISSED

Puigdemont had been widely expected to unilaterally declare Catalonia’s independence on Tuesday after the Catalan government said 90 percent of Catalans had voted for a breakaway in an Oct. 1 referendum that Spain had declared illegal and which most opponents of independence boycotted.

Madrid responded angrily to Puigdemont’s speech, saying the Catalan government could not act on the results of the referendum.

“Neither Mr. Puigdemont nor anyone else can claim, without returning to legality and democracy, to impose mediation… Dialogue between democrats takes place within the law,” Deputy Prime Minister Soraya Saenz de Santamaria said.

Invoking Article 155 to ease Spain’s worst political crisis in four decades would make prospects of a negotiated solution to the Catalonia crisis even more remote.

A spokesman for the Catalan government said earlier on Wednesday that if Madrid went down this road, it would press ahead with independence.

“We have given up absolutely nothing…We have taken a time out…which doesn’t mean a step backwards, or a renunciation or anything like that,” Catalan government spokesman Jordi Turull told Catalunya Radio.

Socialist opposition leader Pedro Sanchez said he would back Rajoy if he had to activate Article 155 and said he had agreed with the prime minister to open a constitutional reform within six months to discuss how Catalonia could fit better in Spain.

It was not clear how the Catalan government would respond to the offer.

MARKET RELIEF

Puigdemont’s speech also disappointed supporters of independence, thousands of whom watched proceedings on giant screens outside parliament before sadly leaving for home.

Financial markets, however, were encouraged that an immediate declaration of independence had been avoided.

Following Puigdemont’s speech, Spain’s benchmark IBEX share index rose as much as 1.6 percent, outperforming the pan-European STOXX 600 index. The rally pushed the main world stocks index, the MSCI’s 47-country ‘All-World’ index, to a record high.

Spain’s 10-year government bond yield — which moves inversely to the price — dropped 5 basis points to 1.65 percent in early trade, according to Tradeweb data.

In Brussels, there was relief that the euro zone’s fourth-largest economy now had at least bought some time to deal with a crisis that was still far from over.

One EU official said Puigdemont “seems to have listened to advice not to do something irreversible”.

The Catalan crisis has deeply divided the northeastern region itself as well as the Spanish nation. Opinion polls conducted before the vote suggested a minority of about 40 percent of residents in Catalonia backed independence.

The stakes are high — losing Catalonia, which has its own language and culture, would deprive Spain of a fifth of its economic output and more than a quarter of exports.

Some of Catalonia’s largest companies have moved their head offices out of the region and others were set to follow if he had declared independence.

(Additional reporting by Julien Toyer, Paul Day, Jesus Aguado; Writing by Adrian Croft; Editing by Julien Toyer and Angus MacSwan)

Spaniards take to streets as Catalonia independence tensions rise

People take part in a pro-union demonstration in Madrid, Spain, October 7, 2017. REUTERS/Sergio Perez

By Raquel Castillo and Sam Edwards

MADRID/BARCELONA (Reuters) – Tens of thousands of people gathered in Madrid and Barcelona on Saturday as Catalonia prepared to declare independence, many dressed in white and calling for talks to defuse Spain’s worst political crisis for decades.

The wealthy northeastern region of Catalonia, with its own language and culture, has long claimed to be distinct from the rest of the country and on Sunday held a referendum on leaving Spain, a vote the constitutional court had banned.

The Catalan authorities say that a majority of those who voted supported a split from Spain, something Madrid says is illegal under the country’s 1978 constitution.

The political stand-off has divided the country, pushed banks and companies to move their headquarters outside Catalonia and shaken market confidence in the Spanish economy, prompting calls from the European Commission for Catalan and Spanish leaders to find a political solution.

In protests called across 50 Spanish cities, thousands gathered dressed in white and carrying banners calling for peace and dialogue between leaders.

Meanwhile in Barcelona, protesters chanted “let’s talk” in Catalan, while many carried signs criticizing political leaders for not finding a diplomatic solution to the impasse.

“This is producing a social rupture in Catalonia and this has to be resolved through dialogue, never via unilateralism,” Jose Manuel Garcia, 61, an economist who attended the protest dressed in white said.

“I’m very worried. This will end badly and everyone will lose (without dialogue).”

While Catalan leader Carles Puigdemont has said he is open to mediation, Prime Minister Mariano Rajoy insists he gives up the independence campaign, which grew in strength during a near-six year economic crisis, before he will discuss the matter.

Meanwhile, in Madrid, parallel to the “Let’s talk” march, thousands gathered beneath the enormous Spanish flag in Colon Plaza waving their own flags, singing and chanting “Viva España” and “Viva Cataonia”.

“I’ve come because I feel very Spanish and makes me very sad what’s happened,” Rosa Borras, 47, an unemployed secretary who had joined a noisy gathering in central Madrid, said.

Borras, wearing a “Catalonia, we love you” sticker and surrounded by thousands waving Spanish flags, added: “I wanted to be here for unity, because I also feel very Catalan. My family lives in Catalonia.”

EU CONCERN

Rajoy’s government mobilized thousands of national police to stop Sunday’s vote, leading to clashes with would-be voters as they tried to close polling stations in schools and remove ballot boxes.

The police violence drew widespread condemnation and forced the government to issue an apology on Friday, although tensions continued to rise after reports that plans for a unilateral declaration of independence will be handed to the Catalan parliament on Tuesday.

The crisis has also caused disquiet among Spain’s European Union partners and German Chancellor Angela Merkel has discussed it with European Commission President Jean-Claude Juncker, an EU official told Reuters. [L8N1MI08F]

Concern is growing in EU capitals about the impact of the crisis on the Spanish economy, the fourth largest in the euro zone, and on possible spillovers to other economies.

European finance ministers, gathering in Brussels on Monday and Tuesday for a regular meeting, could discuss the issue, although it is not formally on the agenda, EU officials said.

The support given in public statements by EU leaders to Rajoy is combined with concern expressed in private about how the Spanish government’s use of police to prevent Catalans from voting last week in an independence referendum could backfire.

Some EU states are worried that talk of Catalan independence could fuel secessionist feelings in other parts of Europe.

(Reporting by Raquel Castillo; Writing by Paul Day; Editing by Alexander Smith)

Spanish court suspends Catalan parliament session, throwing independence call in doubt

A woman reacts as National Police officers leave their hotel in Reus, south of Barcelona, Spain October 5, 2017. REUTERS/Vincent West

By Angus Berwick and Carlos Ruano

BARCELONA/MADRID (Reuters) – Spain’s Constitutional Court on Thursday ordered the suspension of Monday’s session of the regional Catalan parliament, throwing its plans to declare unilateral independence from Spain into doubt.

There was no immediate reaction from Catalan leaders who held an independence referendum on Sunday that was banned by Madrid and marked by violent scenes at electoral stations where Spanish police sought to hinder voting.

The suspension order further aggravated one of the biggest political crises to hit Spain since the establishment of democracy following the death of General Francisco Franco in 1975. But it helped Spanish markets hit in recent days by the uncertainty.

The court said it had agreed to consider a legal challenge filed by the anti-secessionist Catalan Socialist Party.

Spanish shares and bonds, which have been hit by the political turmoil in Catalonia, strengthened after the news of the Constitutional Court’s decision.

The main IBEX stock index rose 2.3 percent, on track for its biggest daily gain in a month, and Spain’s 10-year bond yield was set for its biggest daily fall since April.

Spain’s Economy Minister Luis de Guindos told Reuters in an interview the turmoil was damaging Catalonia.

“This is generating uncertainty that is paralyzing all investment projects in Catalonia. I’m convinced that, right now, not one international or national investor will take part in a new investment project until this is cleared up,” he said.

Spain’s fifth-largest bank, Sabadell, will consider on Thursday whether to shift its headquarters away from Catalonia in the first major sign that the wealthy region’s push for independence from Spain could scare away big business.

Caixabank, Spain’s third largest lender by market capitalization, is also considering moving its legal base outside Catalonia, a source with knowledge of the situation said. A spokesman for the bank said no decision had been taken on a move.

Opinion polls conducted before the vote suggested a minority of around 40 percent of residents in Catalonia backed independence. But a majority wanted a referendum to be held, and the violent police crackdown angered Catalans across the divide.

“GREATER EVILS”

Prime Minister Mariano Rajoy called on Catalan leader Carles Puigdemont on Thursday to abandon plans to unilaterally declare independence from Spain or risk “greater evils”.

In an interview with Spanish news agency EFE, Rajoy said the solution to the Catalan crisis was a prompt return to legality and “a statement as soon as possible that there will not be a unilateral declaration of independence, because that will also avoid greater evils,” Rajoy said.

He did not elaborate but ruling party lawmakers say that Rajoy, a conservative who has taken a hard line on Catalan independence, is considering the unprecedented step of dissolving the Catalan parliament and triggering regional elections.

Catalan officials released preliminary referendum results showing 90 percent support in favor of breaking away. But turnout was only about 43 percent as Catalans who favor remaining part of Spain mainly boycotted the ballot and many polling stations were closed.

Puigdemont said he was not afraid of being arrested for organizing Sunday’s banned referendum.

“Personally, I am not afraid of that,” Puigdemont said in an interview in the German daily Bild, published on Thursday, when asked about his possible arrest.

“And I’m not surprised any more about what the Spanish government is doing. My arrest is also possible, which would be a barbaric step.”

Neither the Spanish government nor the judiciary has threatened to arrest Puigdemont, though Madrid accuses him of breaking the law by ignoring a Constitutional Court ruling forbidding the referendum from going ahead.

On Wednesday, in a televised address, Puigdemont renewed his call for international mediation but said the results of the referendum would have to be applied.

Puigdemont has not explained the scope of his proposal for international mediation, whether it would envisage a compromise short of independence or deal only with divorce arrangements.

Rajoy has ruled out international mediation as a format for resolving the future of Catalonia, offering instead all-party Spanish political talks to find a solution, on the condition independence is taken off the table.

Sunday’s crackdown by Spanish police, Rajoy’s hardline stance and an uncharacteristically strong intervention this week by Spain’s King Felipe VI seems to have deepened Catalonia’s resolve to continue with the project.

“We will go as far as people want it. But without the use of force. We were always a peaceful movement. And I am sure that Spain will not be able to ignore the will of so many people,” Puigdemont told Bild.

(Additional reporting by Paul Day, Andres Gonzalez, Rodrigo de Miguel; Writing by Adrian Croft; Editing by Julien Toyer and Ralph Boulton)

Catalonia to move to declare independence from Spain on Monday

People stand during a demonstration two days after the banned independence referendum in Barcelona, Spain, October 3, 2017. REUTERS/Susana Vera

By Sonya Dowsett

MADRID/BARCELONA (Reuters) – Catalonia will move on Monday to declare independence from Spain, a regional government source said, as the European Union nation nears a rupture that threatens the foundations of its young democracy and has unnerved financial markets.

Pro-independence parties which control the regional parliament have asked for a debate and vote on Monday on declaring independence, the source said. A declaration should follow this vote, although it is unclear when.

Catalan President Carles Puigdemont earlier told the BBC that his government would ask the region’s parliament to declare independence after tallying votes from last weekend’s referendum, which Madrid says was illegal.

“This will probably finish once we get all the votes in from abroad at the end of the week and therefore we shall probably act over the weekend or early next week,” he said in remarks published on Wednesday.

The constitutional crisis in Spain, the euro zone’s fourth-biggest economy, has shaken the common currency and hit Spanish stocks and bonds, sharply raising Madrid’s borrowing costs.

On Wednesday, the Ibex stock index <.IBEX>, fell below 10,000 points for the first time since March 2015 as bank stocks tumbled. In a sign of the nervous public mood, Catalonia’s biggest bank, Caixabank <CABK.MC>, and Spain’s economy minister had earlier sought to assure bank customers that their deposits were safe.

EVENING STATEMENT

Puigdemont’s comments appeared after Spain’s King Felipe VI accused secessionist leaders on Tuesday of shattering democratic principles and dividing Catalan society, as tens of thousands protested against a violent police crackdown on Sunday’s vote.

The Catalan leader is due to make a statement at 9 p.m. (1900 GMT) on Wednesday, after an all-party committee of the region’s parliament meets to agree a date — likely to be Monday — for a plenary session on independence.

Spain has been rocked by the Catalan vote and the Spanish police response to it, which saw batons and rubber bullets used to prevent people voting. Hundreds were injured, in scenes that brought international condemnation.

Catalans came out onto the streets on Tuesday to condemn the police action, shutting down road traffic, public transport and businesses, and ratcheting up fears of intensifying unrest in a region that makes up one-fifth of the Spanish economy.

Road closures related to the protests briefly halted production at Volkswagen’s <VOWG_p.DE> Catalonia plant.

As shares in Spain’s big lenders fell on Wednesday, Economy Minister Luis de Guindos tried to reassure investors and customers. “Catalan banks are Spanish banks and European banks are solid and their clients have nothing to fear,” he said on the sidelines of a conference in Madrid.

Caixabank <CABK.MC>, Catalonia’s largest lender, said in a memo to employees late on Tuesday that its only objective was to “protect clients’, shareholders’ and employees’ interests”.

“IRRESPONSIBLE BEHAVIOR”

Spanish Prime Minister Mariano Rajoy, a conservative who has taken a hard line on the issue, faces a huge challenge to see off Catalan independence without further unrest.

European Council President Donald Tusk has backed his constitutional argument but some fellow members of the bloc have criticized his tactics. Tusk has appealed to Rajoy to seek ways to avoid escalation in Catalonia and the use of force.

Brussels has in the past given little or no encouragement to separatist movements inside the European Union, whether those of the Catalans, Scots, Flemings or others.

Pro-independence parties who control the regional government staged the referendum in defiance of a Constitutional Court ruling that the vote violated Spain’s 1978 constitution, which states the country is indivisible.

Catalonia has its own language and culture and a political movement for secession that has strengthened in recent years.

Participants in Sunday’s ballot — only about 43 percent of eligible voters — opted overwhelmingly for independence, a result that was expected since residents who favor remaining part of Spain mainly boycotted the referendum.

Outside Catalonia, Spaniards mostly hold strong views against its independence drive. In his televised address, the king said the “irresponsible behavior” of the Catalan leaders had undermined social harmony in the region.

“Today Catalan society is fractured and in conflict,” he said. “They (the Catalan leaders) have infringed the system of legally approved rules with their decisions, showing an unacceptable disloyalty toward the powers of the state.”

The king said the crown was strongly committed to the Spanish constitution and to democracy, and underlined his commitment to the unity and permanence of Spain. He had earlier met Rajoy to discuss the situation in Catalonia.

Opinion polls conducted before the vote suggested a minority of around 40 percent of residents in the region backed independence. But a majority wanted a referendum to be held, and the violent police crackdown angered Catalans across the divide.

(Additional reporting by Adrian Croft and Julien Toyer in Madrid; Writing by Mark Bendeich and Sonya Dowsett; Editing by Catherine Evans)

Turkey’s Erdogan says Iraqi Kurdish authorities “will pay price” for vote

Turkey's Erdogan says Iraqi Kurdish authorities "will pay price" for vote

ISTANBUL (Reuters) – Turkey’s President Tayyip Erdogan said on Saturday Iraqi Kurdish authorities would pay the price for an independence referendum which was widely opposed by foreign powers.

Iraq’s Kurds overwhelmingly backed independence in Monday’s referendum, defying neighboring countries which fear the vote could fuel Kurdish separatism within their own borders and lead to fresh conflict.

“They are not forming an independent state, they are opening a wound in the region to twist the knife in,” Erdogan told members of his ruling AK Party in the eastern Turkish city of Erzurum.

Erdogan has built strong commercial ties with Kurdish authorities in northern Iraq, which pump hundreds of thousands of barrels of oil daily through Turkey for export to world markets.

“We don’t regret what we did in the past. But since the conditions are changed and the Kurdish Regional Government, to which we provided all support, took steps against us, it would pay the price,” he said.

Turkey has repeatedly threatened to impose economic sanction, effectively cutting their main access to international markets, and has held joint military exercises with Iraqi troops on the border.

However, after Erdogan said that Iraqi Kurds would go hungry if Ankara halted the cross-border flow of trucks and oil, it has said that any measures it took would not target civilians and instead focus on those who organized the referendum.

Iraq’s Defense Ministry said on Friday it plans to take control of the borders of the autonomous Kurdistan region in coordination with Iran and Turkey.

Turkish Prime Minister Bin Yildirim, speaking on Saturday, did not refer specifically to those plans, but said Ankara would no longer deal with Kurdish authorities in Erbil.

“From now on, our relationships with the region will be conducted with the central government, Baghdad,” he said. “As Iran, Iraq and Turkey, we work to ensure the games being played in the region will fail.”

(Reporting by Dirimcan Barut; Writing by Dominic Evans; Editing by Stephen Powell)

Turkey to give harshest response if border threatened after Iraq referendum: PM

Turkish Prime Minister Binali Yildirim addresses his supporters in Kirsehir, Turkey, August 23, 2017. Mustafa Aktas/Prime Minister's Press Office/Handout via REUTERS

By Daren Butler

ISTANBUL (Reuters) – Turkey said on Thursday it had stopped training peshmerga forces in northern Iraq in response to a Kurdish independence vote there, whose backers had thrown themselves “into the fire”.

The Kurdish peshmerga have been at the forefront of the campaign against Islamic State and been trained by NATO-member Turkey’s military since late 2014.

Northern Iraq’s main link to the outside world, Turkey views Monday’s vote – which final results on Wednesday showed overwhelming in favour of independence from Baghdad – as a clear security threat.

Fearing it will inflame separatism among its own Kurds, Ankara had already threatened military and economic measures in retaliation. Government spokesman Bekir Bozdag reiterated on Thursday any such actions would be coordinated with the Iraqi central government.

Bozdag, also a deputy prime minister, told broadcaster TGRT in an interview that more steps would follow the peshmerga decision and that the prime ministers of Turkey and Iraq would meet soon.

Turkey, which is home to the region’s largest Kurdish population, is battling a three-decade Kurdish insurgency in its southeast, which borders northern Iraq.

MINIMUM DAMAGE?

President Tayyip Erdogan said it was inevitable that the referendum “adventure” in northern Iraq, carried out despite Turkey’s warnings, would end in disappointment.

“With its independence initiative, the northern Iraq regional government has thrown itself into the fire,” he said in a speech to police officers at his palace in Ankara.

Earlier this week, Erdogan said Iraqi Kurds would go hungry if his country halted the flow of trucks and oil across the border, near where Turkish and Iraqi soldiers have been carrying out military exercises this week.

Hundreds of thousands of barrels of oil a day flow through a pipeline in Turkey from northern Iraq, connecting the region to global oil markets.

Erdogan has repeatedly threatened economic sanctions, but has given few details.

Prime Minister Binali Yildirim said Turkey would not shy away from giving the harshest response to a national security threat on its border, but that this was not its first choice.

Speaking in the central Turkish province of Corum, Yildirim said Turkey, Iran and Iraq were doing their best to overcome the crisis caused by the referendum with the minimum damage.

Iraq, including the Kurdish region, was Turkey’s third-largest export market in 2016, according to IMF data. Turkish exports to the country totalled $8.6 billion, behind Germany and Britain.

(Additional reporting by Ece Toksabay, Ercan Gurses and Ezgi Erkoyun; Writing by Daren Butler; Editing by David Dolan and John Stonestreet)

Iraqi Kurdish leader says ‘yes’ vote won independence referendum

Kurds celebrate to show their support for the independence referendum in Erbil, Iraq September 25, 2017. REUTERS/Ahmed Jadallah

By Maher Chmaytelli and Ahmed Rasheed

BAGHDAD/ERBIL, Iraq (Reuters) – Iraqi Kurdish leader Masoud Barzani said on Tuesday that Kurds had voted “yes” to independence in a referendum held in defiance of the government in Baghdad and which had angered their neighbors and their U.S. allies.

The Kurds, who have ruled over an autonomous region within Iraq since the 2003 U.S.-led invasion that toppled Saddam Hussein, consider Monday’s referendum to be an historic step in a generations-old quest for a state of their own.

Iraq considers the vote unconstitutional, especially as it was held not only within the Kurdish region itself but also on disputed territory held by Kurds elsewhere in northern Iraq.

The United States, major European countries and neighbors Turkey and Iran strongly opposed the decision to hold the referendum, which they described as destabilizing at a time when all sides are still fighting against Islamic State militants.

In a televised address, Barzani said the “yes” vote had won and he called on Iraq’s central government in Baghdad to engage in “serious dialogue” instead of threatening the Kurdish Regional Government with sanctions.

The Iraqi government earlier ruled out talks on Kurdish independence and Turkey threatened to impose a blockade.

“We may face hardship but we will overcome,” Barzani said, calling on world powers “to respect the will of millions of people” who voted in the referendum.

Earlier, the Kurdish Rudaw TV channel said an overwhelming majority, possibly over 90 percent, had voted “yes”. Final results are expected by Wednesday.

Celebrations continued until the early hours of Tuesday in Erbil, capital of the Kurdish region, which was lit by fireworks and adorned with Kurdish red-white-green flags. People danced in the squares as convoys of cars drove around honking their horns.

In ethnically mixed Kirkuk, where Arabs and Turkmen opposed the vote, authorities lifted an overnight curfew imposed to maintain control. Kirkuk, located atop huge oil resources, is outside the Kurdish region but controlled by Kurdish forces that occupied it in 2014 after driving out Islamic State fighters.

In neighboring Iran, which also has a large Kurdish minority, thousands of Kurds marched in support of the referendum, defying a show of strength by Tehran which flew fighter jets over their areas.

The referendum has fueled fears of a new regional conflict. Turkey, which has fought a Kurdish insurgency within its borders for decades, reiterated threats of economic and military retaliation.

Barzani, who is president of the Kurdish Regional Government, has said the vote is not binding, but meant to provide a mandate for negotiations with Baghdad and neighboring countries over the peaceful secession of the region from Iraq.

IRAQI OPPOSITION

Baghdad said there would be no such talks.

“We are not ready to discuss or have a dialogue about the results of the referendum because it is unconstitutional,” Iraqi Prime Minister Haider al-Abadi said on Monday night.

Abadi ordered the Kurds to hand over control of their airports to the central government within three days or face an international embargo on flights.

Abadi, a moderate from Iraq’s Shi’ite Arab majority, is coming under pressure at home to take punitive measures against the Kurds. Hardline Iranian-backed Shi’ite groups have threatened to march on Kirkuk.

“We as Popular Mobilisation would be fully prepared to carry out orders from Abadi if he asks to liberate Kirkuk and the oilfields from the separatist militias,” said Hashim al-Mouasawi, a spokesman for the al-Nujabaa paramilitary group.

The Kurds, who speak their own language related to Persian, were left without a state of their own when the Ottoman empire crumbled a century ago. Around 30 million are scattered in northern Iraq, southastern Turkey and parts of Syria and Iran.

The autonomous region they control in Iraq is the closest the Kurds have come in modern times to a state. It has flourished, largely remaining at peace while the rest of Iraq has been in a continuous state of civil war for 14 years.

Since the fall of Saddam, they have had to carefully balance their ambitions for full independence with the threat of a backlash from their neighbors and the reluctance of Washington to redraw borders.

In the past four years they achieved a measure of economic independence by opening a route to sell oil through pipelines to a port in Turkey. But that still leaves them at the mercy of Ankara, which draws a firm line at formal independence.

Turkish President Tayyip Erdogan warned that Iraqi Kurds would go hungry if Turkey imposed sanctions, and said military and economic measures could be used against them.

“This referendum decision, which has been taken without any consultation, is treachery,” he said, repeating threats to cut off the pipeline.

The Kurds say the referendum acknowledges their contribution in confronting Islamic State after it overwhelmed the Iraqi army in 2014 and seized control of a third of Iraq.

Voters were asked to say ‘yes’ or ‘no’ to the question: “Do you want the Kurdistan Region and Kurdistani areas outside the (Kurdistan) Region to become an independent country?”

Iraqi soldiers joined Turkish troops for military exercises in southeast Turkey on Tuesday near the border with the Kurdistan region. Turkey also took the Rudaw TV channel off its satellite service TurkSat.

STATE DEPARTMENT

Iraq’s Kurds have been close allies of the United States since Washington offered them protection from Saddam in 1991. But the United States has long encouraged the Kurds to avoid unilateral steps so as not to jeopardize the stability of Iraq or antagonize Turkey.

The U.S. State Department said it was “deeply disappointed” by the decision to conduct the referendum but Washington’s relationship with region’s people would not change.

Asked about the referendum, White House spokeswoman Sarah Sanders said on Monday: “We hope for a unified Iraq to annihilate ISIS (Islamic State) and certainly a unified Iraq to push back on Iran.”

The European Union regretted that the Kurds had failed to heed its call not to hold the referendum and said Iraqi unity remained essential in facing the threat from Islamic State.

The Kremlin said Moscow backed the territorial integrity of countries in the region. Unlike other powers, Russia had not directly called on the Kurds to cancel the referendum. Moscow has quietly pledged billions of dollars in investment in the past year, becoming the biggest funders of the Kurds.

Iran banned flights to and from Kurdistan on Sunday, while Baghdad asked foreign countries to stop oil trading with the Kurdish region and demanded that the KRG hand over control of its international airports and border posts with Iran, Turkey and Syria.

Iranian Major General Yahya Rahim Safavi, a top adviser to the Supreme Leader, called on “the four neighboring countries to block land borders” with the Iraqi Kurdish region, according to state news agency IRNA. Tehran supports Shi’ite Muslim groups that are powerful in Baghdad.

Syria, embroiled in a civil war and whose Kurds are pressing ahead with their own self-determination, also rejected the referendum.

KRG Prime Minister Nechirvan Barzani said he hoped to maintain good relations with Turkey.

“The referendum does not mean independence will happen tomorrow, nor are we redrawing borders,” he said in Erbil on Monday. “If the ‘yes’ vote wins, we will resolve our issues with Baghdad peacefully.”

(Additional reporting by Ece Toksabay in ANKARA and Umit Bektas in HABUR, Turkey; Editing by Philippa Fletcher, Peter Graff and Giles Elgood)

Turkey, Iran, Iraq consider counter-measures over Kurdish referendum

Iraqi people visit Bekhal Waterfall in Erbil, Iraq September 21, 2017.

ANKARA (Reuters) – Turkey, Iran and Iraq have agreed to consider counter-measures against Kurdish northern Iraq over a planned independence referendum, Turkey’s foreign ministry said on Thursday.

In a joint statement, the foreign ministers of the three countries voiced concerns that the referendum would endanger the gains Iraq has made against Islamic State, and reiterated their fears over the potential for new conflicts in the region.

“In the meeting, the three ministers emphasized that the referendum will not be beneficial for the Kurds and the Kurdish Regional Government (KRG), and agreed, in this regard, to consider taking counter-measures in coordination,” the statement said.

The statement gave no details on the possible measures but said the ministers, who were in New York attending the United Nations General Assembly, called on the international community to intervene.

Turkey’s President Tayyip Erdogan has threatened to impose sanctions against Kurdish northern Iraq. Turkish troops are also carrying out military exercises near the border.

The central government in Baghdad, Iraq’s neighbors and Western powers fear the vote could divide the country and spark a wider regional conflict, after Arabs and Kurds cooperated to dislodge Islamic State from its stronghold in Mosul.

The statement said Turkish Foreign Minister Mevlut Cavusoglu, Iranian Foreign Minister Javad Zarif and their Iraqi counterpart Ibrahim al-Jaafari expressed concerns that conflicts surfacing as a result of the referendum would “prove difficult to contain”.

But the Kurds say they are determined to go ahead with the vote, which, though non-binding, could trigger the process of separation in a country already divided along sectarian and ethnic lines.

The three ministers also voiced their “strong commitment” to maintain Iraq’s territorial and political unity, the foreign ministry’s statement said.

Turkey, which has pulled forward a cabinet meeting and national security council session to Friday over the referendum, will also convene parliament for an extraordinary meeting on Saturday, the chairman of the ruling AK Party’s parliamentary group said on Thursday.

 

(Reporting by Tuvan Gumrukcu and Tulay Karadeniz; Editing by Dominic Evans)