26 November 2012

Reuters: Catalan election weakens bid for independence from Spain

Separatists in Spain's Catalonia won regional elections on Sunday but failed to get a resounding mandate for a referendum on independence, which had threatened to pile political uncertainty on top of Spain's economic woes.

The result will come as a relief for Spanish Prime Minister Mariano Rajoy, who is battling a deep recession and 25 per cent unemployment while he struggles to cut high borrowing costs by convincing investors of Spain's fiscal and political stability.

Resurgent Catalan separatism had become a major headache for Rajoy, threatening to provoke a constitutional crisis over the legality of a referendum just as he is trying to concentrate on a possible international bailout for troubled Spain.

Catalonia shares some of its tax revenue with the rest of Spain and many Catalans believe their economy would prosper if they could invest more of their taxes at home. The tax issue has revived a long-dormant secessionist spirit in Catalonia.

Catalonia's traditional separatist party, the Republican Left, or ERC, won the second biggest presence in the Catalan parliament, with 21 seats. The Socialists took 20 seats. And Rajoy's centre-right People's Party won 19. Three other parties, including two that want a referendum on independence, split the remaining 25 seats. ECFR's Torreblanca said the Catalan elections were similar to those around Europe in that economic woes have benefited marginal political groups, while larger, traditional parties have lost ground.

The momentum has been inspired in part by Scotland's plans to hold a referendum in 2014 and by the break away movement in Flanders. But it could subside as voters contemplate the economic realities of independence especially if the price to pay is leaving the European Union.

Wary that separatism could spread to the Basque Country and beyond, Rajoy said this week that the Catalan election was more important than general elections.

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© Reuters