Spain stocks sink as Catalonia mulls split
Catalan declaration of independence expected soon.
Catalonia’s MADRID — regional government mulled Wednesday when to declare the region’s independence from Spain, with some lawmakers saying it would happen Monday, and Spanish stocks sunk as the country grappled with its most serious national crisis in decades.
A top EU official said Spain and Catalonia must talk, even if Catalan authorities broke the law with an unauthorized independence vote.
Catalonia’s regional president, Carles Puigdemont, who has said an independence declaration will come in a few days, was to deliver a televised speech later Wednesday. He’s also addressing the regional parliament Monday to review the disputed vote last Sunday — a session that his parliamentary supporters say will consider the independence declaration.
Spain, which has declared the referendum illegal and invalid, is bitterly opposed to any independence move.
Prime Minister Mariano Rajoy’s conservative government has said it will respond with “all necessary measures” to counter Catalan defiance, and is holding talks with opposition leaders in Madrid to forge a consensus over what to do.
Led by losses for the two main Catalan banks, Spain’s main stock market index lost almost 3 percentage points in Wednesday’s trading amid uncertainty over how the secession bid proceeds.
Other Spanish banks, telecommunications giant Telelefonica, fashion retailer Inditex and leading energy companies Repsol, Iberdrola and Gas Natural also suffered significant losses.
The crisis in Spain grew more acute Sunday when some 900 people needed medical attention after police cracked down to try to prevent the vote. Over 400 police also had bruises. On Tuesday, huge crowds held street protests in Catalonia and unions staged a strike to protest the police’s actions.
Rajoy says dialogue can only happen within the limits of the Spanish Constitution, which doesn’t allow a region to secede. Catalans, however, say they have earned the right to be considered a national entity and refuse any talks that don’t explore a way for independence.
European Commission Vice President Frans Timmermans on Wednesday called for a negotiated end to theal deadlock, but said there is a “general consensus that regional government of Catalonia has chosen to ignore the law when organizing the referendum.”