Monday, October 9, 2017

Spain versus Catalonia

The 2017 Spanish constitutional crisis is an ongoing political conflict between the Government of Spain and the Generalitat of Catalonia over the issue of the 2017 Catalan independence referendum, starting after the law intending to allow such a referendum was denounced by the Spanish government under Prime Minister Mariano Rajoy and subsequently suspended by the Constitutional Court until it ruled on the issue. The Catalan government under President Carles Puigdemont announced that neither central Spanish authorities nor the courts would halt their plans and that it intended to hold the vote anyway, sparking a legal backlash that quickly spread from the Spanish and Catalan governments to Catalan municipalities—as local mayors were urged by the Generalitat to provide logistical support and help for the electoral process to be carried out—as well as to the Constitutional Court, the High Court of Justice of Catalonia and state prosecutors.

By 15 September, as pro–Catalan independence parties began their referendum campaigns, the Spanish government had launched an all-out legal offensive to thwart the upcoming vote, including threats of a financial takeover of much of the Catalan budget, police seizing pro-referendum posters, pamphlets and leaflets which had been regarded as illegal and criminal investigations ordered on the over 700 local mayors who had publicly agreed to help stage the referendum. Tensions between the two sides reached a critical point after Spanish police raided the Catalan government headquarters in Barcelona on 20 September, at the start of Operation Anubis, and arrested 13 senior Catalan officials, with some international media describing the events as "one of the worst political crises in modern Spanish history". The referendum was termed as a "coup attempt against Spanish democracy" and "against Europe" by several Spanish politicians.

Background

Recent increase in support for Catalan independence has its roots in a Constitutional Court ruling in 2010, which struck down parts of the regional 2006 Statute of Autonomy that granted new powers of self-rule to the region. The ruling came after four years of deliberation concerning a constitutional appeal filed by the conservative People's Party (PP) under Mariano Rajoy—then the country's second-largest party, in opposition to the government of José Luis Rodríguez Zapatero's Spanish Socialist Workers' Party—and was met with anger and street protests in Catalonia. Shortly afterward the PP took power in Spain, and after a massive independence demonstration took place in Barcelona on 11 September 2012—Catalonia's National Day—the Catalan government under Artur Mas called a snap regional election and set out to initiate Catalonia's process towards independence.

After a pro-independence coalition formed by the Junts pel Sí alliance and the Popular Unity Candidacy won a slim majority in the Parliament in the 2015 regional election, Carles Puigdemont replaced Mas as President of the Generalitat. Puigdemont promised to organise a binding independence referendum based on results from a multi-question, non-binding vote in 2014, when about 80% of those who voted were believed to have backed independence for the region, and up to 91.8% supported Catalonia becoming a state—albeit on an estimated turnout around or below 40%. The Catalan government invoked the right of people to self-determination and Catalonia's political, economical and cultural background to back up its proposal for a referendum on Catalan independence. The Government of Spain, now with Mariano Rajoy as Prime Minister, opposed such a vote, arguing that any referendum on Catalan independence would go against the country's 1978 Constitution, as it made no provision for a vote on self-determination.

On 9 June 2017, Puigdemont announced that the planned independence referendum would be held on 1 October. The Catalan government criticised the attitude of the Spanish government in refusing to negotiate a referendum and accused it of behaving undemocratically.

Events after the stormy referendum

On 3 October 2017, as huge protest rallies and a general strike took place in Catalonia, King Felipe VI delivered an unusually strongly worded televised address in which he condemned the referendum organizers for acting "outside the law", accusing them of "unacceptable disloyalty" and of "eroding the harmony and co-existence within Catalan society itself". He also warned the referendum could put the economy of the entire north-east region of Spain at risk. Reactions to the King's speech were mixed. Party officials from the PP and Ciudadanos praised the King's "commitment to legality", whereas leaders from Unidos Podemos and Catalunya en Comú criticised it as "unworthy and irresponsible", paving the way for a harsh intervention in Catalan autonomy. PSOE's leaders expressed support for the King's words in public, but were reported to be privately dissatisfied that the King had not made any call to encourage understanding or dialogue between the Spanish and Catalan governments. On 5 October the Constitutional Court of Spain suspended a future parliamentary session (scheduled for 9 October) that was planned in order to push for a Declaration of Independence.

On 5 October, Banco Sabadell, the second-largest bank based in Catalonia, announced its decision to move its legal headquarters out of the region amid economic uncertainty over the future of Catalonia's political situation ahead of a projected unilateral declaration of independence the ensuing week, which had seen sharp falls in the group's share prices the previous day and rating agencies downgrading the region. Concurrently, CaixaBank, the biggest bank in the region and the third largest in Spain, also announced it was considering redomiciling outside Catalonia. This sparked a massive business exit in the ensuing hours, with companies such as Abertis, Gas Natural, Grifols, Fersa Energias Renovables, Agbar, Freixenet, Codorníu, Idilia Foods, San Miguel Beer and Planeta Group also announcing or considering their intention to move their HQs out of Catalonia. The Spanish government announced on Friday 6 October that it would issue a decree allowing companies based in Catalonia to move out of the region without holding a shareholders meeting.

No comments:

Post a Comment