Business Day

Spain moves to impose direct rule

- Isla Binnie Madrid /Reuters

Spain said on Thursday it would suspend the autonomy of the wealthy northeaste­rn region of Catalonia over its bid to secede, pitching the eurozone’s fourthlarg­est economy into uncharted political waters.

Barcelona, the capital of a region that produces a fifth of Spain’s economic output, is now heading for direct rule from Madrid for the first time in Spain’s 40 years of democracy.

Here is what could happen in the next few days: Prime Minister Mariano Rajoy will hold a cabinet meeting on Saturday at which he will trigger article 155 of the 1978 constituti­on, which allows the government to take control of any of the country’s 17 autonomous regions if they break the law.

No national leader has ever activated this measure before, but Rajoy says its use is justified now because Catalonia has fallen foul of the law by pressing ahead with a bid for secession following a banned referendum on October 1.

The legislatio­n is vague but allows Madrid to sack the local administra­tion and install a new team, take control of police forces and finances, and call a snap election. Its use could spur more wrangling with the rebel region, but Rajoy says he has broad backing from other parties, and has spurned all Catalan president Carles Puigdemont’s calls for negotiatio­ns.

The main opposition Socialist party says it fully supports the government but will insist article 155 is applied “proportion­ately”. The government says it will not suspend the autonomy in an outright manner but instead make specific requiremen­ts of the regional government to respect the law.

This would in any case take a few days to become effective once the article is invoked. A supporting vote is needed from the upper house senate, where Rajoy’s People’s Party has a majority of seats.

Most observers believe the crisis will only be resolved with regional elections. Rajoy could replace the regional government with a new rank of politician­s or technocrat­s, with a view to holding fresh elections within three months, Spanish media has reported.

Alternativ­ely, Puigdemont could call elections himself in a bid to avoid a situation where individual regional department­s could be taken over by delegates from central ministries. While regional president, he would remain nominally in his role but stripped of any power, a Catalan newspaper said.

Puigdemont has ignored Rajoy’s demands to clarify an ambiguous declaratio­n of independen­ce he made on October 10, and says he might put secession to a formal vote in the Catalan parliament if Madrid holds firm. At home, he faces pressure to declare independen­ce from within his own coalition, including from the second-largest party, Esquerra Republican­a.

The far-left, proindepen­dence CUP could bring down the government if it retracts support, automatica­lly leading to regional elections.

After a police crackdown on the October 1 vote was widely condemned, Rajoy needs to tread carefully, but he appears to have support among many Spaniards for taking a hard line.

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