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)

Venezuela’s Maduro defends disputed vote, opposition divided

Venezuela's President Nicolas Maduro talks to the media during a news conference at Miraflores Palace in Caracas, Venezuela October 17, 2017. REUTERS/Carlos Garcia Rawlins

By Alexandra Ulmer and Andrew Cawthorne

CARACAS (Reuters) – President Nicolas Maduro defended Venezuela’s “secure” election system on Tuesday as opponents struggled to present a united front over allegations of fraud in a nationwide vote surprisingly won by the ruling socialists.

Despite widespread anger over economic hardship, the Socialist Party confounded opinion polls to take 17 of 23 governorships in Sunday’s election.

Stunned by the defeat that undermines their aim to win the presidency in 2018, the opposition Democratic Unity coalition refused to acknowledge the results and called the election rigged, as did the United States.

Though the coalition has complained of an unfair playing field – from abuse of state resources to last-minute moving of vote centers away from opposition strongholds – it has not given detailed evidence of ballot-tampering.

Some opposition figures have acknowledged abstention by their supporters – disillusioned by the failure of street protests to dislodge Maduro earlier this year – was a big factor.

Two losing opposition candidates, Henri Falcon in Lara state and Alejandro Feo La Cruz in Carabobo, have conceded defeat, breaking with the official coalition position.

Both criticized “irregularities” in the vote but also lamented many demoralized opposition supporters stayed at home.

“We need courage to recognize truth in adversity,” said Falcon.

The strongest criticism of Sunday’s vote came from Washington, which slammed Maduro’s “dictatorship.” Several European nations also expressed concern, while 12 countries in the Americas from the so-called Lima Group condemned “obstacles, intimidation, manipulation and irregularities”.

Washington is considering further sanctions on Venezuela, after various measures against top officials and the economy earlier this year, while the European Union is mulling the same.

Government leaders have smarted at fraud accusations.

“Venezuela’s election system is the most secure and audited in the world,” Maduro said on Tuesday. “President Donald Trump, I am not a dictator; I am a humble worker … I have a moustache and look like Stalin, but I’m not him.”

The Venezuelan leader invited EU foreign policy chief Federica Mogherini to visit or receive him in Brussels to “open their eyes,” and told “stupid” Canada to stop meddling.

Foreign Minister Jorge Arreaza later said on Twitter that Maduro had recalled Venezuela’s ambassador to Canada for talks.

‘WE WILL NOT KNEEL’

Heaping further humiliation on Venezuela’s opposition, the governors were due to be sworn in on Tuesday by a new legislative superbody elected controversially in July.

The opposition boycotted that vote and has refused to recognize the entirely pro-government Constituent Assembly, which supersedes all institutions including the opposition-controlled congress.

The opposition’s five governors-elect planned to boycott the swearing-in ceremony, defying Maduro’s threat to bar them from office for failing to accept the assembly as a higher authority.

“We will not kneel to anyone,” said Juan Pablo Guanipa, who won the oil-rich western Zulia state.

Despite food shortages, runaway inflation and a tanking currency, Venezuela’s government retains significant bastions of support, especially in poorer, rural parts of the country.

In his news conference, Maduro said the socialists also won Bolivar state, which would take its total to 18 governorships versus five for the opposition.

The government won a total of 54 percent of the votes overall, he added. The election board has not confirmed the Bolivar result or the overall vote figures.

With the opposition coalition’s dozens of parties arguing over whether there was fraud, what went wrong, and where to go next, it will need to regroup and map strategy quickly heading into the 2018 presidential campaign.

Its very future may even be in doubt, since many young activists who took to the streets for four straight months of protests and pitched battles with security forces earlier this year feel betrayed by their leaders.

The unrest killed at least 125 people.

Maduro has long accused opposition leaders of being behind violence, and on Tuesday called the new opposition governor of Zulia state a “fascist” while accusing his counterpart in Tachira of links to Colombian “paramilitaries.”

The election aftermath appears to have sunk a government-opposition mediation effort that began last month in the Dominican Republic. Even though Maduro wants to resuscitate the talks, the opposition coalition has ruled that out.

“We are the majority, the dictatorship is more-and-more illegitimate, popular and global condemnation grows daily against this regime,” it said in a communique late on Monday.

(Additional reporting by Diego Ore and Deisy Buitrago in Caracas, Tibisay Romero in Valencia and Helen Murphy in Bogota; Editing by Tom Brown)

Venezuela vote dispute escalates foreign sanctions threat

Venezuelan citizens wait in line at a polling station during a nationwide election for new governors in Caracas, Venezuela. REUTERS/Ricardo Moraes

By Alexandra Ulmer and Deisy Buitrago

CARACAS (Reuters) – Venezuela’s opposition cried foul on Monday over the ruling socialists’ win in gubernatorial elections, raising the threat of more foreign sanctions following the vote in what the United States called “an authoritarian dictatorship.”

President Nicolas Maduro’s candidates took 17 governorships, versus five for the opposition, in Sunday’s nationwide poll, according to the pro-government electoral board.

The socialists’ strong showing came despite devastating food shortages, triple-digit inflation, and a collapsing currency. Polls had suggested the opposition would easily win a majority.

Dismayed leaders of the Democratic Unity coalition demanded an audit after citing a litany of abuses, including multiple voting, state food handouts on the day of the poll, forced attendance at gunpoint and suspicious phone and power outages.

The opposition fell short of offering detailed evidence of outright fraud, however, and there were no conventional foreign observer missions to verify claims of vote-rigging.

“This is a process of electoral fraud without precedent in our history,” said opposition spokesman Angel Oropeza. An estimated 1 million voters were blocked from voting, he said, referring to claims the election board skewed results by relocating hundreds of polling places away from opposition strongholds.

Many dispirited opposition supporters now see foreign pressure as their only real hope of hurting Maduro ahead of next year’s presidential vote.

The United States condemned the elections as neither free nor fair and vowed to keep up pressure on Maduro for the erosion of democracy in the South American OPEC nation.

“As long as the Maduro regime conducts itself as an authoritarian dictatorship, we will work with members of the international community and bring the full weight of American economic and diplomatic power to bear in support of the Venezuelan people as they seek to restore their democracy,” State Department spokeswoman Heather Nauert said in a statement.

The Trump administration has already imposed sanctions on Maduro and top officials, including election board head Tibisay Lucena. Washington has also struck at the government’s ability to raise more funds via foreign debt.

The European Union could also take measures against Maduro, who was narrowly elected to replace the late leader Hugo Chavez in 2013.

French President Emmanuel Macron, who has also branded Venezuela a dictatorship, expressed concern at claims of “serious irregularities” and “lack of transparency” in the gubernatorial vote.

“France deplores this situation and is working with its EU partners to examine appropriate measures to help resolve the serious crisis,” the French foreign ministry said.

POOR TURNOUT

Venezuela’s government, which insisted in advance of Sunday’s vote that it would demonstrate its commitment to democracy, still retains significant support in poorer, rural settings. And it seems unlikely that supporters of the elite-led opposition, which has struggled to capitalize on discontent over the economy, will return to the streets en masse after months of grueling protests earlier this year.

The protests failed to pressure the government into holding an early presidential election, freeing scores of jailed activists or accepting foreign humanitarian aid.

At least 125 people died, while thousands were injured and arrested in violence.

“Obviously, this was a brutal fraud,” said David Osorio, 21, who lost an eye when he was hit by a gas cannister in the clashes. “But I don’t know if going back to the streets is best … because the same will happen and many are simply not willing.”

A few hundred opposition protesters massed in front of the electoral council in the southern Bolivar state, where results were still not given by Monday evening. The National Guard used tear gas to scatter the crowd, according to a Reuters witness.

Various opposition leaders acknowledged disillusionment and people staying home had played a big role.

“We shot ourselves in the foot,” legislator Jose Guerra said, noting record turnout of 74 percent in a 2015 congress vote, which the opposition won, versus 61 percent on Sunday.

Flanked by his powerful wife, soldiers, and red-shirted party members, a jubilant Maduro painted the opposition as sore losers. “When they lose they cry fraud. When they win they shout ‘Down with Maduro,'” said Maduro, 54.

The opposition pocketed governorships including the turbulent Andean states of Merida and Tachira and the oil-producing region of Zulia.

The government, which had previously controlled 20 governorships, took states across Venezuela’s languid plains and steamy Caribbean coast. It won back populous Miranda state, which includes part of the capital Caracas, and also won in Barinas, Chavez’s home state, where his younger brother retained the top job.

(Additional reporting by Andrew Cawthorne, Andreina Aponte, Diego Ore, Eyanir Chinea, Corina Pons, Girish Gupta in Caracas, Isaac Urrutia in Maracaibo, William Urdaneta in Ciudad Guayana and Arshad Mohammed in Washington D.C.; Writing by Alexandra Ulmer and Girish Gupta; Editing by Andrew Cawthorne and Tom Brown)

Kenya vote in balance as crisis deepens after Odinga quits

A supporter of Kenyan opposition National Super Alliance (NASA) coalition, carries a banner depicting Kenyan opposition leader Raila Odinga during a protest along a street in Nairobi, Kenya, October 11, 2017. REUTERS/Baz Ratner

By Katharine Houreld and Duncan Miriri

NAIROBI (Reuters) – Kenya lurched deeper into political crisis on Wednesday as a court ruling and a parliamentary vote appeared to ease Uhuru Kenyatta’s path to a second term as president, a day after his rival quit an election they were to contest.

Kenyatta and Raila Odinga were due to face off in a repeat election on Oct. 26, after the Supreme Court annulled their August ballot — in which the president was declared the winner — due to irregularities. [nL8N1LI1QY]

But Odinga pulled out of the re-run on Tuesday, fuelling doubts about whether it would be contested at all. Wednesday’s interventions by the judiciary and legislature added to the uncertainty.

As police used teargas to disperse opposition protesters demanding electoral reform, the High Court approved a petition by Ekuru Aukot, who polled less than 1 percent in the August vote, to contest the second ballot.

Aukot has yet to announce if he will definitely run.

Further muddying the political waters, parliament passed an election law amendment stating that if one candidate withdrew from the re-run election, the remaining one would automatically win. The vote was boycotted by opposition lawmakers.

That would mean Kenyatta could be declared president if he faced no challengers. [nL8N1MM0U5]

The events stoked confusion among voters and fears that politically-driven violence might escalate. Months of political uncertainty have already blunted growth in East Africa’s richest nation, a long-time ally of the West.

“There’s a real atmosphere of confusion and uncertainty. There seems to be dozens of opinions of what should come next,” said Murithi Mutiga, a senior Horn of Africa analyst for the global thinktank International Crisis Group.

UNEASE

Justifying his pullout on Tuesday, Odinga said the election would not be free and fair and renewed calls for the electoral board (IEBC), which he blamed for the procedural irregularities identified in the first ballot, to be replaced. [nL8N1ML3OC]

Opposition supporters on Wednesday renewed their protests for electoral reform.

Demonstrators lit bonfires in Kisumu, an Odinga stronghold in the country’s west, while more than a thousand supporters marched through the central business district in the capital Nairobi. Police used teargas to disperse them in both cities, witnesses said.

A repeat of the widespread ethnic clashes that killed 1,200 people following a disputed presidential poll in 2007 appears unlikely at this stage.

But at least 37 people were killed in protests immediately following the August vote, almost all of them by police, a Kenyan rights group said Monday. [nL8N1MK1YD]

“We want a reformed IEBC,” said Elisha Odhiambo, an opposition legislator, referring to the electoral board, which has frequently relied on riot police dispersing protests outside its offices in recent weeks.

After the High Court ruling in his favour, Aukot told reporters that he still had concerns about the board and would issue a statement in a day or two giving clarity about his plans.

It was unclear if other candidates from the first ballot with little support would also seek to be included, but the election board said it still had time to print ballot papers.

The Sept. 1 Supreme Court judgement that nullified Kenyatta’s 1.4 million vote win also stipulated elections had to be held within 60 days.

If that schedule is not met, the constitution provides for the speaker of parliament, a member of Kenyatta’s party, to take power.

With two weeks to go until the elections, it is still unclear who will stand.

“I would expect one of the parties will try to seek an authoritative announcement from the Supreme Court,” International Crisis Group’s Mutiga said.

Amid the political uncertainty, the government has trimmed this year’s GDP growth forecast from 5.9 percent to 5.5 percent last month.

The country’s equity markets slid further on Wednesday. Kenya’s all share index slipped 1.24 percent while the blue chip index fell 1.14 percent.

(Additional reporting by Humphrey Malalo and George Obulutsa; editing by John Stonestreet)

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)

Cuts hurt Mexico quake response, outlook ahead of 2018 vote

Members of rescue teams work at a collapsed building after an earthquake in Mexico City, Mexico September 28, 2017. REUTERS/Henry Romero

By Gabriel Stargardter

MEXICO CITY (Reuters) – Spending cuts and a failure by Mexico’s president to upgrade an earthquake alert system hurt life-saving prevention programs and amplified recovery costs after two major temblors this month, current and former government officials said.

Although President Enrique Pena Nieto is eager to show a prompt and competent response to the earthquakes, which killed more than 430 people, the budget of recovery agencies is threadbare due to cost-cutting by his administration.

Pena Nieto, an unpopular centrist struggling to get a successor from his party or an ally elected president next July, on Wednesday acknowledged the problem, urging lawmakers to boost funding in the 2018 budget.

“The reconstruction needs more resources,” he said.

The government has slashed disaster budgets by as much as 50 percent in recent years, part of a broader cost-cutting effort to make up for shortfalls caused by a drop in oil revenues, which finance about 20 percent of Mexico’s federal budget.

The 2017 budget alone reduced funding for Mexico’s various disaster and civil protection efforts by 25 percent, from about 8.6 billion pesos ($475 million) in 2016 to 6.4 billion pesos.

In a statement, Pena Nieto’s office defended its performance and said cutbacks could not be attributed solely to the presidency. While the executive branch proposes the budget, the spending plan is ultimately approved by Congress.

“Despite the budget restrictions, the civil protection system has strengthened in recent years,” the president’s office said in a statement.

The cuts last year prompted lawmakers to warn in a report that “the state is relinquishing its responsibilities to its population, given inevitable and unknowable disaster risks.”

Now, after the two big quakes, and damage from hurricanes before that, Mexico is hard-pressed to find ways to rebuild. “The reconstruction fund has zero pesos,” Luis Felipe Puente, the government’s emergency services chief, said in an interview.

The president’s office said funding had not hindered the start of reconstruction, saying insurance and a disaster bond augmented federal coffers.

For those who work in readiness efforts, however, the current problem is a clear example of what happens when governments skimp on prevention measures, from risk assessments to early warning systems for quakes, volcanic activity and other disasters.

According to the United Nations, every dollar spent on preparedness saves about seven dollars in response. In 2014, Mexico’s federal auditor chastised the government for spending more on reconstruction than on preparing for disasters.

“We should be investing more in prevention,” said Enrique Guevara, a former head of Mexico’s National Center for Disaster Prevention, or CENAPRED. “Firstly because you save lives, and secondly you save money.”

“OLYMPIC SILENCE”

At CENAPRED, founded in the wake of a massive 1985 quake that killed thousands, expenditure fell by 20 percent between 2012 and 2016, hurting the upkeep of a national risk atlas and lowering morale at the institution, according to a senior official there who requested anonymity to speak frankly.

The government also slashed 2017 budgets for two government funds that finance disaster efforts, official data shows.

This year’s budget for FOPREDEN, a fund for the prevention of natural disasters, was cut by 50 percent. FONDEN, a larger fund for disaster relief, lost a quarter of its budget, according to the government spending plan.

In addition to reducing funds for the federal government’s own efforts, the president has turned down or ignored financing requests at another program officials said could help lower disaster tolls.

Unlike the previous administration of former President Felipe Calderon, Pena Nieto has not invested in a widely praised earthquake alert system credited with saving lives since it was implemented in Mexico City in 1989.

The system, the Center for Seismic Instrumentation and Registry, detects many quakes across the country, sounding a warning that gives the 20 million residents of greater Mexico City crucial time to evacuate buildings before some tremors arrive.

Funded mostly by the city government, and currently operating on less than 30 million pesos per year, the system needs more monitors to detect even more temblors, like the 7.1 quake on Sept. 19.

Better detection, the system’s director said, could have given Mexico City residents up to 5 seconds more warning that day. As it happened, many locals said they heard the alarm only once the ground began shaking.

But repeated requests to Pena Nieto and various federal agencies for additional funding in recent years were met with “Olympic silence,” said Juan Manuel Espinosa, the director.

In its statement, the president’s office said the federal government had no obligation to fund the alarm system. It noted a shortfall in past financing for the system by the state of Oaxaca, which is a contractual partner with the Mexico City government in its financing.

“NO MONEY FOR ANYTHING”

For Pena Nieto and his Institutional Revolutionary Party, or PRI, the cutbacks could create problems at the ballot box, especially among a Mexican electorate that is increasingly ready for change after years of corruption and drug violence.

Although Pena Nieto cannot stand for reelection, the PRI ranks third in current projections for the July vote.

Meanwhile, rivals like leftist frontrunner and former Mexico City Mayor Andres Manuel Lopez Obrador are poised to take advantage of any missteps.

“Whoever gets this wrong will feel the effects in the election,” said Gustavo Mohar, a former Mexican intelligence official who now runs a strategic risk consultancy.

For the recovery to succeed, the government must find additional sources of financing. Estimates of the cost range from about $2 billion, according to the government, to as much as $4 billion, a calculation by investment bank Nomura.

Puente, the emergency services chief, said the finance ministry may receive funding from catastrophe bonds, issued by the World Bank in August, that could provide Mexico with up to $360 million in protection from certain quakes and storms.

But aside from housing the homeless and rebuilding, the government must also ensure it spends disaster funds wisely and transparently – a notoriously tricky task, particularly for an administration that many Mexicans consider corrupt.

In the hard-hit capital, where at least 206 people died, volunteers helping with recovery work this week said they distrust the government’s ability to provide effective relief.

“There is no money for anything,” said Beatriz Navarrete, a 21-year-old medical student manning a donations tent. “If the government was really spending money, we wouldn’t be here, begging for medicine.”

(Reporting by Gabriel Stargardter; Additional reporting by Dan Trotta. Editing by Paulo Prada.)

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)

Turkey threatens retaliation after Iraqi Kurdish independence vote

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

By Maher Chmaytelli

ERBIL, Iraq (Reuters) – The Iraqi government ruled out talks on possible secession for Kurdish-held northern Iraq on Tuesday and Turkey threatened sanctions after a referendum in the region showed strong support for independence.

Initial results of Monday’s vote indicated 72 percent of eligible voters had taken part and an overwhelming majority, possibly over 90 percent, had said “yes”, Kurdish TV channel Rudaw said. 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.

In neighboring Iran, which has a large Kurdish minority, thousands of Kurds marched in the streets to show their support for 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.

Kurdistan Regional Government (KRG) President Masoud Barzani says 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

But Iraq’s opposition to Kurdish independence did not waver.

“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 in a speech on Monday night.

The Kurds held the vote despite threats from Baghdad, Iraq’s powerful eastern neighbor Iran, and Turkey, the region’s main link to the outside world.

“This referendum decision, which has been taken without any consultation, is treachery,” Turkish President Tayyip Erdogan said, repeating threats to cut off the pipeline that carries hundreds of thousands of barrels of oil a day from northern Iraq to global markets.

He warned that Iraqi Kurds would go hungry if Turkey imposed sanctions and said military and economic measures could be used against them.

Iraqi Kurds – part of the largest ethnic group left stateless when the Ottoman empire collapsed a century ago – 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?”

With 30 million ethnic Kurds scattered across the region, mainly in Iraq, Iran, Turkey and Syria, governments fear the spread of separatism to their own Kurdish populations.

Iraqi soldiers joined Turkish troops for military exercises in southeast Turkey on Tuesday near the border with Iraq’s Kurdistan region.

Turkey also took the Rudaw TV channel off its satellite service TurkSat, a Turkish broadcasting official told Reuters.

STATE DEPARTMENT

The U.S. State Department said it was “deeply disappointed” by the KRG’s decision to conduct the referendum but added that Washington’s “historic relationship” with the people of the Iraqi Kurdistan Region 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 signaled its opposition to a Kurdish breakaway in northern Iraq, saying Moscow backed the territorial integrity of countries in the region.

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 have ruled or held security and government positions in Iraq since the U.S.-led invasion that toppled Saddam Hussein in 2003.

Syria, embroiled in a devastating civil war and whose Kurds are pressing ahead with their own self-determination, 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.”

British Foreign Secretary Boris Johnson reiterated London’s opposition to the vote, urging “all sides to refrain from provocative statements and actions in its aftermath.

“The priority must remain the defeat of Daesh and returning stability to liberated areas,” he added, a reference to Islamic State militants who continue to control parts of Iraq and Syria.

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