Catalonia flag
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.
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.
-Reuters
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