Catalan police call for neutrality as Spain exerts control

Catalan police call for neutrality as Spain exerts control

By Jesús Aguado and Sonya Dowsett

MADRID/BARCELONA (Reuters) – Catalonia’s police force told its officers to remain neutral in the struggle over the region’s fight for independence on Saturday, a step toward averting possible conflict as the Madrid government starts to impose direct control.

Spanish Prime Minister Mariano Rajoy dismissed the Catalan government, took over the administration and called a new election after the regional parliament made a unilateral declaration of independence on Friday, aggravating Spain’s worst political crisis in four decades.

The declaration of Catalonia as a separate nation was almost immediately rendered futile by Rajoy’s actions, while other European countries, the United States and Mexico also rejected it and expressed support for Spain’s prime minister.

But emotions are running high and the next few days will be tricky for Madrid as it embarks on enforcing direct rule. Rajoy designated Deputy Prime Minister Soraya Saenz Santamaria to oversee the process.

The regional parliament’s vote, which was boycotted by three national opposition parties, capped a battle of wills between the independence movement, headed by the now-sacked Carles Puigdemont and the Madrid government.

The separatists say a referendum on Oct. 1 gave them a mandate for independence. However, less than half of eligible voters turned out for the ballot, which Madrid declared illegal and tried to stop.

Opinion polls show that more than half of the 5.3 million people eligible to vote in the wealthy northeastern region, which is already autonomous, do not want to break from Spain.

In an effort to defuse tensions, the regional police force urged its officers not to take sides, an internal note seen by Reuters showed.

There have been doubts over how the Mossos d’Esquadra, as the Catalan police are called, would respond if ordered to evict Puigdemont and his government.

The force is riven by distrust between those for and against independence and is estranged from Spain’s national police forces, Mossos and national officers have told Reuters. Some Catalan officers stood between national police and those trying to vote during the banned referendum.

“Given that there is it is likely to be an increase in gatherings and rallies of citizens in all the territory and that there are people of different thoughts, we must remember that it is our responsibility to guarantee the security of all and help these to take place without incident,” said the memo, which had no name attached to it.

Government buildings, the headquarters of national political parties, ports, airports, courts, and the Bank of Spain were being guarded, the Interior Ministry said. Units of the regional force could be replaced if events made that necessary, it said.

The Madrid government also sacked the Mossos’ chief, Josep Lluis Trapero, the official gazette announced on Saturday.

Trapero became a hero to the secessionists after his force took a much softer stance than national police in enforcing the ban on the referendum.

Spain’s High Court banned Trapero from leaving the country and seized his passport as part of an investigation for alleged sedition, although it did not order his arrest.

Prosecutors say he failed to give orders to rescue national police trapped inside a Barcelona building during pro-independence protests last month.

In Barcelona, thousands of independence supporters packed the Sant Jaume Square in front of the regional headquarters on Friday night, waving Catalan flags and singing traditional songs in the Catalan language as bands played.

Some analysts say that street confrontation is possible as Madrid enforces control, but there was no trouble overnight and the streets of Barcelona were quiet on Saturday.

Emmanuel Torcal, a 52-year-old businessman walking his dog, said he was sympathetic to independence but worried about the escalation and possible consequences.

“I sympathize but I have my life, my work, and this is affected. But I am Catalan and I say if we have to go, let’s go.”

The main secessionist group, the Catalan National Assembly, has urged civil servants not to follow orders from the Spanish government and to mount “peaceful resistance” while a pro-independence trade union, the CSC, called a strike.

The government said it would ensure a minimum service.

MADRID SAYS VIVA ESPANA

About 1,000 people took part in a pro-unity rally in Madrid on Saturday and others turned out in the northern city of Valladolid — an indication of the resentment the independence drive has caused in the rest of Spain.

Rosa Cano, a 26-year-old architect demonstrating in Madrid’s Plaza de Colon, said: “The most important thing is the unity of Spain and we have to fight for that. The declaration of independence was a joke.”

Aitor Sanchez, a 30-year-old worker, said he was saddened the government had taken control of Catalonia but it had no choice.

“These are delicate moments in our country. But I believe we must respect the law.”

The chaos has prompted a flight of business from Catalonia, which contributes about a fifth of Spain’s economy, the fourth-largest in the euro zone. Tourism in hugely popular Barcelona has been hit, and markets have shown signs of concern.

European leaders have also denounced the push, fearing it could fan separatist sentiment around the continent.

Catalonia has a litany of historic grievances, exacerbated during the 1939-1975 Franco dictatorship, when its culture and politics were suppressed.

The new regional election will be held on Dec. 21. But it is not certain whether this can resolve the crisis as it could increase the numbers of independence supporters in parliament.

(Reporting by Sonya Dowsett and Jesús Aguado, writing by Angus MacSwan, additional by Andrés González and Tomás Cobos, editing by Alexander Smith)

Catalonia declares independence from Spain, direct Madrid rule looms

Catalonia declares independence from Spain, direct Madrid rule looms

By Sam Edwards and Julien Toyer

BARCELONA/MADRID (Reuters) – Catalonia’s parliament declared independence from Spain on Friday in defiance of the Madrid government, which at the same time was preparing to impose direct rule over the region.

Although the declaration was in effect a symbolic gesture as it will not be accepted by Spain or the international community, the moves by both sides take Spain’s worst political crisis in four decades to a new level.

Spanish Prime Minister Mariano Rajoy immediately called for calm and said the rule of law would be restored.

The motion passed in the regional parliament in Barcelona — which was boycotted by opposition parties — said Catalonia constituted an independent, sovereign and social democratic state. It called on other countries and institutions to recognize it.

It also said it wanted to open talks with Madrid to collaborate on setting up the new republic.

“It is not going to be easy, it is not going to be free, it is not going to change in a day. But there is no alternative to a process towards the Catalan Republic,” lawmaker Marta Rovira of the Junts pel Si pro-independence alliance said in a debate leading to the vote.

After the debate, lawmakers from members of three main national parties — the People’s Party, the Socialists and Ciudadanos, walked out.

Members of the pro-independence parties and the far-left Podemos then voted in 70-10 in favour in a secret ballot aimed at hindering any attempt by the central government to lay criminal charges on them.

Spanish shares and bonds were sold off when the result of the vote was announced.

Catalan leader Carles Puigdemont left the chamber to shouts of “President!”.

Meanwhile in Madrid the upper house of Spain’s parliament, the Senate, was due to approve Article 155, the law that allowing the central government to take over the autonomous region.

“Exceptional measures should only be adopted when no other remedy is possible,” Spanish Prime Minister Mariano Rajoy said in an address to the Senate. “In my opinion there is no alternative. The only thing that can be done and should be done is to accept and comply with the law.”

The Catalan leadership was ignoring the law and making a mockery of democracy, he said.

“We are facing a challenge unprecedented in our recent history,” said Rajoy, who has staked out an uncompromising position against Catalonia’s campaign to break away from Spain.

After the Senate vote, Rajoy was expected to convene his cabinet to adopt the first measures to govern Catalonia directly. This could include sacking the Barcelona government and assuming direct supervision of Catalan police forces.

But how direct rule would work on the ground – including the reaction of civil servants and the police – is uncertain.

Some independence supporters have promised to mount a campaign of civil disobedience, which could lead to direct confrontation with security forces.

The crisis developed after an independence referendum on Oct. 1 was declared illegal by Madrid. Although it endorsed independence, it drew only a 43 percent turnout as Catalans who oppose independence largely boycotted it.

WORRIED, NERVOUS

In Barcelona, crowds of independence supporters were swelling on downtown streets, shouting “Liberty” in the Catalan language and singing traditional Catalan songs.

“I’m worried, I’m nervous like everybody. But freedom is never free,” said Jaume Moline, 50, musician.

Montserrat Rectoret, a 61-year-old historian, said: “I am emotional because Catalonia has struggled for 40 years to be independent and finally I can see it.”

The crisis has split Catalonia and caused deep resentment around Spain – national flags now hang from many balconies in the capital in an expression of unity.

It has also prompted a flight of business from the wealthy northeastern region and alarmed European leaders who fear the crisis could fan separatist sentiment around the continent.

Catalonia is one of Spain’s most prosperous regions and already has a high degree of autonomy. But it has a litany of historic grievances, exacerbated during the 1939-1975 Franco dictatorship, when its culture and politics were suppressed.

(Reporting by Paul Day and Julien Toyer, writing by Angus MacSwan, editing by Mark Heinrich)

Catalan leader Puigdemont set to call regional election

Protestors carrying Catalan seperatist flags gather outside the Generalitat Palace, the regional government headquarters, in Barcelona, Spain, October 26, 2017. REUTERS/Yves Herman

By Sam Edwards and Julien Toyer

BARCELONA/MADRID (Reuters) – Catalan president Carles Puigdemont is set to call a snap regional election, political allies said, a move that could help break a one-month deadlock between the Madrid government and separatists seeking a split from Spain.

The uncertainty remained high however as Puigdemont who had announced he would deliver an address at 1.30 p.m. (1130 GMT), first delayed it by one hour and then canceled it, triggering speculation he could still change his mind.

Several members of his pro-independence coalition said he would dissolve the regional parliament and call the vote. The regional broadcaster said he would deliver a speech in the assembly at 5 p.m., as had initially been planned.

Barcelona-based La Vanguardia said he would call the vote for Dec. 20 and was taking the decision in a bid to persuade the government of Prime Minister Mariano Rajoy not to enforce direct rule in the region, which he might do as soon as Friday.

The Catalan secessionist drive is Spain’s worst political crisis since the military dictatorship of Francisco Franco ended in 1975. It has fractured society and hundreds of companies have left the region.

It is also the most serious challenge to the integrity of a Western European country since an independence referendum in Scotland in 2014, when voters in the end chose to stay part of the United Kingdom.

European leaders fear it could spur secessionist ambitions in other parts of the continent.

But cracks appeared late on Wednesday in the independence coalition as some members backed an election while others said there was no alternative to independence.

Within minutes of Thursday’s developments, several pro-secession lawmakers and mayors announced they were stepping down.

“I don’t share the decision to call an election. I am resigning as a lawmaker and a member of PdeCat (Puigdemont’s Catalan Democratic Party),” said Jordi Cuminal on Twitter.

Several hundred people also took to the streets and gathered on Placa Sant Jaume, in front of the Catalan government’s headquarters in central Barcelona.

“Puigdemont traitor,” a big banner read.

Far-left party CUP, a key support for Puigdemont’s minority government, said it would oppose a vote.

“Until now, pro-independence supporters had one problem: the Spanish state. If elections are called, they will have two,” it said on twitter.

MARKETS REBOUND

Demand for Spanish debt and shares jumped when it emerged Puigdemont could call an election.

Spain’s 10-year government bond yield – which moves inversely to price – fell 6 basis points to 1.58 percent on the news. The stock index IBEX rose 1.9 percent to a four-week high.

“This news is positive for Spain because it looks like Puigdemont is looking for ways other than declaring independence,” said ING strategist Martin van Vliet.

“It sounds like he is calling these elections so that Madrid does not have to invoke article 155,” that would allow central government to suspend the wealthy region’s autonomy.

It is not yet clear whether Rajoy will impose direct rule as planned or simply seek the Senate’s authorisation to do so but stop short of making it effective.

His government said earlier this week that calling a snap election would not be enough, and Puigdemont would also have to withdraw an ambiguous declaration of independence he made on Oct. 10.

An election could either strengthen Puigdemont’s mandate if pro-independence parties won, or allow him a graceful exit if they did not.

An opinion poll published by the El Periodico newspaper on Sunday showed a snap election would probably have results similar to the last ballot, in 2015, when a coalition of pro-independence parties formed a minority government.

(Additional reporting by the Madrid newsroom; Editing by Angus MacSwan and Robin Pomeroy)

Crisis over Catalan independence nears crucial few days

Crisis over Catalan independence nears crucial few days

By Paul Day and Angus MacSwan

MADRID (Reuters) – Catalan separatist leader Carles Puigdemont is likely to go to Madrid on Thursday to explain his position on independence from Spain and try to stop the national government imposing direct control on the region.

The timing of Puigdemont’s appearance before the Senate suggests he is now unlikely to formally declare independence or call a snap regional election on Thursday, as many analysts had expected. He could still do this on Friday before the Senate strips him of his powers and imposes direct rule from Madrid.

An appearance at a Senate debate could pit Puigdemont face to face with Prime Minister Mariano Rajoy who is vehemently opposed to independence for Catalonia.

The political crisis, Spain’s worst since democracy was restored four decades ago, has become increasingly fraught at the prospect of civil disobedience and even confrontation if Madrid goes ahead with taking direct control of Catalonia in the next few days.

The conflict has caused deep resentment elsewhere in Spain, dented the prosperous region’s economy, and worried other European leaders who see it as fanning separatist sentiment elsewhere on the continent.

Secessionists in Catalonia say an independence referendum on Oct. 1 — which attracted a 43 percent turnout but was mostly boycotted by those Catalans who want to remain in Spain — has given them a mandate for statehood.

The Madrid government declared the referendum illegal and has spurned Puigdemont’s calls for dialogue, instead opting to take control of a region which now has a large measure of autonomy.

It has, however, invited Puigdemont to debate in the Senate.

“President Puigdemont is willing to attend the Senate to explain the allegations, explain his political position, and explain how we have arrived here,” a lawmaker for PDCat (Catalan Democratic Party) said on Wednesday.

Thursday would be the most convenient day, he said.

However, Puigdemont is unlikely to make much headway against a government which vehemently opposes full independence and is using all its legal and political power to stop it.

On Friday, the Senate is due to strip him of his powers and impose direct rule, although the actual steps could be taken gradually in order not to inflame the situation.

ROCK AND A HARD PLACE

Catalonia said on Monday it was confident its officials, including the police, would defy attempts by Madrid to enforce direct rule.

A senior Catalan politician said on Tuesday secessionist leaders may call a snap election to try to break the deadlock. The Catalan parliament meets on Thursday and Friday.

Some Spanish political and business leaders, along with most Catalan newspapers, have urged Puigdemont to call a regional election before he is stripped of his authority. They say direct rule from Madrid would be a humiliation for Catalonia and pose a serious risk of civil unrest.

Calling an election could either strengthen Puigdemont’s mandate if pro-independence parties won, or allow him a graceful exit if they did not.

An opinion poll published by the El Periodico newspaper on Sunday showed a snap election would probably have results similar to the last ballot, in 2015, when a coalition of pro-independence parties formed a minority government.

Justice Minister Rafael Catala said that if Puigdemont appeared before the Senate, it would help resolve the crisis. Madrid has so far refused to meet him until he drops his call for independence.

“If his appearance is within the constitution and the law we’ll be delighted…but if it’s just to ratify his position on Catalonia’s independence, sadly we will not be able to do anything else than continuing with the measures already set by the government,” Catala said.

Analyst Antonio Barroso of Teneo Intelligence said Puigdemont was caught between radicals and moderates in the Catalan establishment.

Radical elements want him to make the Catalan parliament declare independence unilaterally on Thursday or Friday. This would provoke a tough government reaction, playing into their hands, he said.

More moderate voices have said that if he calls an early election, he could stop the imposition of direct rule.

Puigdemont is likely to repeat his call for a dialogue between the Catalan authorities and Madrid and remain ambiguous on his next steps, Barroso said.

“Both sides are engaged in a game to tag each other with the blame for what happens next,” he said.

(Reporting by Paul Day,; Writing by Angus MacSwan; Editing by Julien Toyer and Richard Balmforth)

Snap election not enough to solve crisis, Spain tells Catalan leader

Snap election not enough to solve crisis, Spain tells Catalan leader

By Paul Day

MADRID (Reuters) – Catalonia’s leader cannot solve its political crisis with Madrid just by calling regional elections, Spain’s justice minister said on Tuesday, dampening hopes of a quick fix for a dispute that has rattled investors and fractured the country.

The Spanish government says it will impose direct rule on Catalonia from Friday to counter an illegal independence push, invoking never-before-used powers to fire the government of the northeastern region that is critical to the country’s economy.

The Catalan parliament will meet on Thursday to agree on a response to Madrid, something many analysts said could pave the way for a formal declaration of independence.

Secessionists in Catalonia say that an independence referendum held on Oct. 1 – which drew only a 43 percent turnout and was mostly shunned by Catalans who wish to remain in Spain – has accorded them a mandate to claim statehood.

Catalonia said on Monday it was confident all officials including police would defy attempts by Madrid to enforce direct rule, raising fears among Spain’s European allies of separatist contagion affecting other parts of the continent.

Spanish political leaders, influential business lobbies and most Catalonia newspapers have urged Puigdemont to call a regional election before he is stripped out of his authority.

They say direct rule from Madrid, which was the norm during the dictatorship of Francisco Franco, would be a humiliation for Catalonia and pose a serious risk of social and economic unrest.

Puigdemont has remained silent on the matter of elections. Some of his senior advisers have said holding a vote is a possibility while others have ruled it out. His pro-secession allies are also divided.

The Spanish government said a snap election would be a first step but Puigdemont would also have to withdraw an ambiguous declaration of independence he made earlier this month.

“When the government proposes an option so extreme as Article 155 (powers to cancel Catalonia’s autonomous status), it’s because we believe that there has been a serious failure by Puigdemont to meet his obligations,” Justice Minister Rafael Catala said during a radio interview.

“Everything is not fixed just by calling an election.”

Catala said that if Puigdemont appeared before the Spanish Senate, which plans to authorize direct rule on Friday, it would be a positive step in finding a solution to the conflict.

The Madrid government has refused to meet with the Catalan leader until he drops the call for independence, however, and Catala said any appearance by Puigdemont had to be within a legal and constitutional framework.

“If his appearance is within the constitution and the law we’ll be delighted…But if it’s just to ratify his position on Catalonia’s independence, sadly we will not be able to do anything else than continuing with the measures already set by the government,” said Catala.

(Writing by Julien Toyer; editing by Jesus Aguado and Mark Heinrich)

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 to take control of Catalonia if gets ambiguous reply on independence

People walk with a huge Catalan flag during Spain's National Day in Barcelona.

MADRID (Reuters) – The Spanish government will take control of Catalonia if regional leader Carles Puigdemont replies ambiguously to Madrid’s question about whether he has declared independence from Spain, the interior minister said on Saturday.

Puigdemont made a symbolic declaration of independence on Tuesday night, only to suspend it seconds later and call for negotiations with Madrid on the region’s future.

Spain’s Prime Minister Mariano Rajoy has given him until Monday to clarify his position – and then until Thursday to change his mind if he insists on a split – threatening to suspend Catalonia’s autonomy if he chooses independence.

“The answer must be without any ambiguity. He must say ‘yes’ or ‘no’,” Spanish Interior Minister Juan Ignacio Zoido told Cope radio.

“If he answers ambiguously, it means he doesn’t want dialogue and thus the Spanish government will have to take action,” he also said.

Puigdemont, who is holding consultations with local parties to prepare his answer, faces a tough dilemma.

If he says he did proclaim independence, the central government will step in. If he says he did not declare it, then the far-left Catalan party CUP would probably withdraw its support for his minority government.

CUP on Friday called on Puigdemont to make an unequivocal declaration of independence in defiance of the Madrid government’s deadlines.

Such a hardline position has also been backed by influential pro-independence civic group Asamblea Nacional Catalana (Catalan National Assembly).

They were joined on Saturday by another key member of Puigdemont’s coalition, Esquerra Republicana de Catalunya, whose leader Oriol Junqueras said they should press ahead with splitting from Spain following an independence vote.

The Catalan government said 90 percent of Catalans had voted for a breakaway in an Oct. 1 referendum that central authorities in Madrid had declared illegal and most opponents of independence boycotted, reducing turnout to around 43 percent.

“We have an unequivocal and absolute commitment to fulfill the democratic mandate from Oct. 1,” Junqueras said.

Under Article 155 of the Spanish constitution, the central government in Madrid can suspend the political autonomy of a region if it breaks the law.

This article, which enables Rajoy to sack the Catalan government and call a regional election, has never been activated since the constitution was adopted in 1978 after the death of dictator Francisco Franco.

(Reporting by Rodrigo de Miguel and Julien Toyer; Editing by Adrian Croft)

Allies press Catalan leader to declare full independence, ignore Madrid deadlines

People walk under a huge Catalan flag during Spain's National Day in Barcelona. REUTERS/Gonzalo Fuentes

By Isla Binnie and Paul Day

MADRID (Reuters) – Catalan leader Carles Puigdemont came under pressure from one of his key allies on Friday to declare full independence and ignore a threat of direct rule from the Spanish government.

Puigdemont made a symbolic declaration of independence on Tuesday night, only to suspend it seconds later and call for negotiations with Madrid. [nL8N1ML2NZ]

Spain’s Prime Minister Mariano Rajoy has given him until Monday to clarify his position – and then until Thursday to change his mind if he insists on a split – threatening to suspend Catalonia’s autonomy if he chooses independence.

But far-left Catalan political group CUP called on Puigdemont to make an unequivocal declaration of independence in defiance of the deadlines.

“If (the central Madrid government) wants to continue to threaten and gag us, they should do it to the Republic that has already been claimed,” the party said.

The CUP only holds 10 seats in the 135-seat Catalan parliament. But Puigdemont’s minority government relies on its support to push through legislation and cannot win a majority vote in the regional parliament without its backing.

The wealthy region’s intention to break away after a referendum has plunged Spain into its worst political crisis since an attempted military coup in 1981.

Sources close to the Catalan government said Puigdemont and his team were working on an answer to Rajoy though they declined to say what line he might take.

The CUP statement echoes the position expressed late on Thursday by influential pro-independence civic group Asamblea Nacional Catalana which said: “Given the negative position of Spain toward dialogue, we ask the regional parliament to raise the suspension (on the declaration of independence).”

But the leader of Puigdemont’s party, Artur Mas, who served as the region’s president until 2016 and is still believed to influence key decisions, said on Friday declaring independence was not the only way forward.

“If a state proclaims itself independent and cannot act as such, it’s an independence that is merely aesthetic,” he told Catalan television TV3.

“The external factor must be taken into account in the decisions that will be made from now on,” he said.

The European Union, the United States and most other world powers have made it clear they wanted Catalonia to remain within Spain.

“If we allow Catalonia – and it is none of our business – to separate, others will do the same. I do not want that,” Jean Claude Juncker said in a speech at Luxembourg University.

(This refiled version of the story adds dropped word in paragraph six).

(Writing by Julien Toyer; Editing by Andrew Heavens)

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)