The Jim Bakker Show

Catalan strike severs road links as secessionist leaders regroup

By Silvio Castellanos

BARCELONA, Spain (Reuters) – A general strike called by pro-independence campaigners in Catalonia severed transport links on Wednesday, as leaders of its secessionist movement sought to regain political momentum after failing to agree a joint ticket to contest an election.

Protesters shut down roads, causing huge tailbacks into Barcelona, and some public transport ran minimum services in response to calls for action by two civic groups — whose heads were imprisoned last month on sedition charges — and a labor union.

People stood across dozens of major highways in the region waving placards and chanting “freedom for political prisoners”, TV and video images showed, while minor scuffles were reported on social media as police attempted to move protesters.

While many smaller stores left their shutters closed, most larger shops and businesses in the region appeared to be open as normal.

An uphill task awaited the political heavyweights of the independence campaign, whose parties jointly ran Catalonia for the last two years until Madrid sacked the region’s government in response to its independence push.

Deposed Catalan president Carles Puigdemont’s center-right PDeCAT and the leftist ERC of former regional vice president Oriol Junqueras had until midnight on Tuesday to agree a new pact, but they failed to meet that deadline, meaning they will contest the Dec. 21 vote as separate parties.

The central government in Madrid called the election last month after assuming control of Catalonia following its parliament’s unilateral independence declaration.

Puigdemont is in self-imposed exile in Belgium, while Junqueras is in custody on charges of sedition, rebellion and misuse of public funds.

‘JUNCKER WON’T MEET ME’

Puigdemont, who faces the same charges and is the subject of a extradition request from Madrid, had ambitions to garner support for his independence campaign in the heartland of the European Union.

But that hope has fallen flat, and in an interview published on Wednesday he renewed criticism of the bloc’s executive.

“(EU Commission President Jean-Claude) Juncker welcomes mayors, governors … but he doesn’t want to meet me,” Puigdemont told Belgian Daily De Standaard.

“I’ve always been a convinced European … But the people who are running the EU now, are wrecking Europe … The gap between the Europe of the people and the official Europe is increasing.”

Catalonia’s secessionist push has plunged Spain into its worst political crisis in four decades, triggered a business exodus and reopened old wounds from the country’s civil war in the 1930s.

Prime Minister Mariano Rajoy, who has been unwavering in his opposition to any form of independence for Catalonia, said he hoped next month’s election would usher in “a period of calm” and business as usual for the region.

“I’m hoping for massive participation in the election.. and, after that, we’ll return to normality,” he said in the Madrid parliament building on Wednesday.

An opinion poll released on Sunday by Barcelona-based newspaper La Vanguardia showed Junqueras’ ERC could garner between 45 and 46 seats in Catalonia’s 135-strong regional assembly while Puigdemont’s PdeCat would win just 14 or 15.

In order to reach the 68-seat threshold for a majority, they would then have to form a parliamentary alliance with anti-capitalist CUP.

ERC and PDeCAT could still reach an agreement after the vote, but by standing together they could have held more seats, polls and projections from the 2015 election results showed.

Economy Minister Luis de Guindos told a banking conference in Madrid he hoped the election would revive the Catalan success story “during which it has enjoyed great economic and cultural prosperity together with a high level of self-governance.”

For some Catalans who ignored Wednesday’s strike — called by the CSC union and supported by civic groups Asamblea Nacional Catalana (ANC) and Omnium Cultural — that moment is already overdue.

“Why should I strike, nobody is going to raise my salary. In this world we have to work and not argue so much,” Jose Luis, a construction worker, told Reuters TV as he walked through Barcelona on his way to work.

“The politicians should work more and stop their silliness.”

(Additional reporting by Paul Day in Madrid and Robert-Jan Bartunek in Brussels; writing by John Stonestreet; editing by Paul Day)

Ousted Catalan leader accepts new election, says ‘long road’ to independence

By Robert-Jan Bartunek and Raquel Castillo

BRUSSELS/MADRID (Reuters) – Catalonia’s ousted leader Carles Puigdemont on Tuesday agreed to the snap election called by Spain’s central government when it took control of the region to stop it breaking away, but he said the fight for independence would go on.

Puigdemont, speaking at a news conference in Brussels, also said he was not seeking asylum in Belgium after Spain’s state prosecutor recommended charges for rebellion and sedition be brought against him. He would return to Catalonia when given “guarantees” by the Spanish government, he said.

Puigdemont’s announcement that he would accept the regional election on Dec. 21 signaled the Madrid government had for now at least gained the upper hand in the protracted struggle over Catalonia, a wealthy northeastern region that already had considerable autonomy.

Resistance to Madrid’s imposition of direct control on Catalonia failed to materialize at the start of the week and the secessionist leadership is in disarray.

But a poll released on Tuesday showed that support for the creation of an independent state of Catalonia rose to an almost three-year high in October.

Spain’s Constitutional Court on Tuesday blocked the unilateral declaration of independence made by the regional parliament on Friday – a largely symbolic move that gained no traction and led to the assembly’s dismissal by Prime Minister Mariano Rajoy less than an hour after it was made.

“I ask the Catalan people to prepare for a long road. Democracy will be the foundation of our victory,” Puigdemont said in Brussels, where he showed up after dropping out of sight over the weekend.

Rajoy, who has taken an uncompromising stance throughout the crisis, is gambling on anti-independence parties taking power in the regional parliament and putting the brakes on the independence drive. Puigdemont will hope a strong showing for the independence camp will reboot the secessionists after a tumultuous several weeks.

Puigdemont did not say when he would return to Spain and denied he was fleeing from justice, but he could be called to testify before the court on the rebellion and sedition charges as soon as the end of the week. He did not specify what guarantees he sought.

The Spanish government said at the weekend Puigdemont was welcome to stand in the election. The judicial process was a separate matter, it said.

The Supreme Court also began processing rebellion charges against Catalan parliament speaker Carme Forcadell and other senior leaders on Tuesday.

CATALONIA SPLIT

The political crisis, Spain’s gravest since the return of democracy in the late 1970s, was triggered by an independence referendum held in Catalonia on Oct. 1.

Though it was declared illegal by Spanish courts and less than half Catalonia’s eligible voters took part, the pro-secessionist regional government said the vote gave it a mandate for independence.

The United States, Britain, Germany and France have all backed Rajoy and rejected an independent Catalan state, although some have called for dialogue between the opposing sides.

Puigdemont, Vice President Oriol Junqueras and other Catalan leaders had said previously they would not accept their dismissal. But their respective parties, PdeCat and Esquerra Republicana de Catalunya, said on Monday they would take part in the election, a tacit acceptance of direct rule from Madrid.

The struggle has divided Catalonia itself and caused deep resentment across the rest of Spain, although separatist sentiment persists in the Basque Country and some other areas.

Two recent opinion polls showed support for independence may have started to wane.

But an official regional survey published on Tuesday showed some 48.7 percent of Catalans believe the region should be independent, up from 41.1 pct in June and the highest since December 2014.

Based on 1,338 interviews, the Centre d’Estudis d’Opinio poll was the first survey released since the independence declaration though the bulk of it was taken before then, between Oct. 16 and Oct. 29.

DIM HOPES

Despite his dash to the European Union’s power center, Puigdemont’s hopes of engaging the bloc in his cause seem forlorn. Member states have asserted their support for Spanish unity and EU institutions in Brussels say they will deal only with Madrid and that the dispute remains an internal matter.

“Our position remains unchanged,” EU Commission spokeswoman Mina Andreeva said in Brussels on Tuesday.

But some analysts say the dispute is not going to disappear anytime soon despite the present state of play.

“Spain is heading for a period of disruption, and like the UK and Brexit, having its policy agenda dominated by one political issue while other key challenges fade into the background,” said Raj Badiani, an economist at IHS Markit in London.

“A more tangible impact from the crisis could evolve from early 2018, with the uncertainty set to build as Catalans push harder for a legally binding referendum.”

Influential Catalan business lobbies have backed direct rule and called on firms to stay in the region. The crisis has prompted more than 1,000 businesses to switch their legal headquarters from Catalonia, which contributes about a fifth of Spain’s economy, the fourth-largest in the euro zone.

Spain’s IBEX fell slightly as Puigdemont began speaking in Brussels but then rose again.

For some in Barcelona, the overwhelming emotion appears to be exasperation.

“It’s a farcical and completely ridiculous situation,” said Ernesto Hernandez Busto, a 42-year-old editor. “This extreme nationalism, this separatism, has taken Catalonia to the most absurd situation and the worst inconvenience we have had in the last 40 years.”

(Additional reporting by Paul Day and Sonya Dowsett in Madrid, Writing by Angus MacSwan, Editing by Janet Lawrence and John Stonestreet)

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)

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)

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)

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)

Catalonia nears possible independence proclamation despite Madrid warnings

By Angus Berwick

BARCELONA (Reuters) – Catalan police tightened their guard on the region’s parliament on Tuesday where secessionists have threatened to adopt a unilateral declaration of independence from Spain despite warnings from Madrid of swift counter-measures.

Regional leader Carles Puigdemont held a meeting of his cabinet to decide how to press an independence drive that has stirred powerful emotions across Spain and raised concern in European Union partner states.

Catalan police armed with automatic rifles stood guard at Barcelona’s Parc de la Ciutadella which houses the elegant 18th century building. Spanish national police, decried by separatists over their use of force to hinder an Oct. 1 referendum, were not to be seen.

A declaration of independence would deepen Spain’s biggest political crisis since an attempted military coup in 1981 and would almost certainly draw tough counter-measures from Madrid, possibly including suspension of the regional government.

The parliament and other buildings, such as the regional high court building, could become a focus of contention between Spanish and Catalan authorities.

Thousands of national police reinforcements sent by Madrid for the referendum remain in the area, many of them in two cruise ships docked in Barcelona harbor.

Pro-independence demonstrators were due to gather before the parliament building under the slogan “Hello Republic” to mark Puigdemont’s speech at 6 p.m. (1600 GMT).

Hundreds of thousands of people demonstrated in Barcelona against independence at the weekend, waving red-yellow Spanish flags through the city center. That rally fell a week after some 900 people were injured when police fired rubber bullets and stormed crowds with truncheons to disrupt a referendum ruled illegal in Madrid.

Puigdemont has said he is determined to apply a law passed by the Catalan assembly which called for a declaration of independence within days if Catalans voted ‘yes’ in the Oct. 1 referendum.

The government of Spain’s wealthiest region says 90 percent of those who voted backed independence, but turnout was only 43 percent as many opponents of independence stayed at home.

The Madrid government has said it will respond immediately to any unilateral declaration.

Puigdemont could ask the parliament to vote on a motion of independence, which lawmakers say would start a period of up to six months during which Catalonia would write a new constitution and negotiate a divorce with Spain; or he could make a statement of intent on a future independence declaration.

Catalan government spokesman Jordi Turull refused to disclose what Puigdemont would say but told a news conference after the cabinet meeting he would be “clear and explicit” and Tuesday would be an historic day.

Ruling party lawmakers say Prime Minister Mariano Rajoy is considering taking the unprecedented step of dissolving the Catalan parliament and triggering new regional elections, the so-called nuclear option.

The European Commission repeated its call for dialogue in Spain to end the crisis in Catalonia. Puigdemont has also called for talks and international mediation, but Rajoy has said he will not negotiate with the Catalan leaders unless they abandon plans to declare independence.

BUSINESS CLIMATE

Markets have been rattled by the Catalan crisis, raising Spain’s borrowing costs and pushing down shares.

Spain’s benchmark 10-year bond yields were a touch lower on Tuesday, but above lows hit the previous session as investors awaited Puigdemont’s speech. Spain’s benchmark Ibex share index was down nearly one percent.

The tension is taking its toll on the business climate. On Monday, three more Catalonia-based companies joined a business drift from the region that has gathered steam since the Oct. 1 referendum.

Property group Inmobiliaria Colonial and infrastructure firm Abertis both decided to relocate their head offices to Madrid and telecoms firm Cellnex said it would do the same for as long as political uncertainty in Catalonia continued.

Publishing house Grupo Planeta said it would move its registered office from Barcelona to Madrid if the Catalan parliament unilaterally declared independence.

Spain’s finance minister said it was the Catalan government’s fault the companies were leaving.

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

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.

The crisis has reopened old divisions in a nation where the right-wing dictatorship of General Francisco Franco, who died in 1975, is a living memory easily revived by strong displays of nationalism.

(Additional reporting by Rodrigo de Miguel, Paul Day, Blanca Rodriguez, Emma Pinedo, Jesus Aguado, Carlos Ruano and Alba Asenjo; Writing by Adrian Croft; editing by Ralph Boulton)

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)

The three wise men parade Madrid’s streets amid tightened security

MADRID (Reuters) – The three biblical wise men paraded through Madrid’s streets amid tight security on Thursday, the eve of Epiphany, which celebrates the day they are said to have visited the infant Christ with gold, frankincense and myrrh.

Melchior, Caspar and Balthazar, accompanied by hundreds of eclectic floats, handed out sweets to the thousands of children lining the Spanish capital’s main boulevard.

Madrid’s authorities deployed 800 police officers, some heavily armed, erected concrete barriers to block access to streets and curbed the movement of trucks after the December attack in Berlin on a Christmas market.

A Tunisian man killed 12 people in the Dec. 19 attack when he plowed a truck into a row of market stalls, leading other European capitals to ramp up security.

The Day of the Kings on Jan. 6 is a bigger day than Christmas for many in Spain. Children often wait until then to open their presents said to have been brought by the wise men and not Santa Claus, the traditional gift-giver elsewhere.

Every Spanish city and most towns hold parades featuring the kings, wearing robes, crowns and billowing beards, and Madrid’s is one of the largest.

In Catalonia controversy has been focused on the attempt by pro-independence organizations to politicize the parade in Vic, a town around 70 kilometers north of Barcelona, with the distribution of lanterns bearing the “estelada” flag, usually used by Catalan separatists.

(Reporting By Jesús Aguado; Editing by Angus Berwick and Richard Lough)

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