DJ Catalan President Looks to Address Parliament Amid Push for Independence -- 3rd Update
By Marina Force
BARCELONA--Catalan President Carles Puigdemont has asked to address the region's Parliament on Tuesday, in a session where lawmakers could consider whether to declare independence from Spain amid a bitter standoff with Madrid.
Meanwhile, the Spanish government maintained pressure on the northeastern region, one of the country's wealthiest, by approving a decree Friday that would make it easier for companies to move their legal base out of Catalonia. A slate of companies, including two large banks, have announced plans to leave the region or said they are considering doing so.
Mr. Puigdemont has asked to inform the regional assembly on Tuesday "of the current political situation," according to his spokesman.
The request comes a day after Spain's Constitutional Court ordered the legislature not to convene a session on whether the region should break free of Spain.
The Catalan Parliament had decided to convene a session on Monday, but it is now unclear whether that will go ahead. Later Friday, parliamentary leaders are scheduled to meet to decide whether to proceed with Monday's session. If the assembly decides to meet Monday, it would be in defiance of Thursday's ruling by Spain's Constitutional Court.
In recent days, Catalan officials said that Mr. Puigdemont would present the results from Sunday's referendum, in which, according to Catalan officials, an overwhelming majority of voters supported secession.
Catalan officials have said that about 90% of those who voted on Sunday cast a ballot in favor of secession, although the vote was marred by irregularities, such as the lack of an official census. Many Catalans, who are against independence or thought the vote was illegitimate, boycotted the vote.
It remains unclear, however, whether the Catalan lawmakers will make a declaration of unilateral secession next week, or will open the door to negotiations with the Spanish government on a path to independence.
Another option is to call new elections for the Catalan assembly, which some separatist lawmakers believe could increase their number of seats in Parliament, strengthening their hand to announce a unilateral secession or negotiate a break with Madrid.
If Catalonia goes ahead with a unilateral declaration of independence, the government of Spanish Prime Minister Mariano Rajoy could invoke a never-used constitutional provision allowing Madrid to seize control of the region.
Meanwhile, Josep Lluis Trapero, the head of Catalonia's police force, was questioned in Madrid on Friday morning as part of an investigation into sedition associated with large demonstrations before the Oct. 1 referendum. Mr. Trapero is being investigated along with another police official and two leaders of the pro-separatist movement on allegations they failed to rein in demonstrators who tried to prevent national police from carrying out a court order to arrest people and seize documents in a separate investigation into the organization of the referendum.
The Spanish government's representative in Catalonia, Enric Millo, apologized on Friday on behalf of Spanish police officers for the "possible consequences" of their actions during the referendum. Nearly 900 people were injured in clashes, according to regional authorities.
Mr. Millo, however, said the blame rested with the Catalan government, which he said encouraged people to "go to the polling stations when everybody knew it was illegal."
Concerns over the prospect of Catalonia should break breaking free of Spain have begun to affect the region's companies.
Banco de Sabadell SA, one of Catalonia's biggest banks, said Thursday that it plans to move its headquarters out of Catalonia, while bankers said another major Catalan lender, CaixaBank SA, also was considering a relocation.
The Spanish government's decree could accelerate the process of companies' moving their legal headquarters outside of Catalonia.
Under the new rule, companies will only need to seek shareholder approval to move their base when it is specifically stipulated in their corporate statutes, the minister said. Otherwise, it will be the company board that decides on relocation, Spanish Economy Minister Luis de Guindos said in a press conference Friday.
Late Thursday, textile company Dogi International Fabrics said it plans to move its headquarters to Madrid, sending its stock soaring 10% on Friday. Dogi's shares suffered at the start of the week, but have since recovered.
Rating companies Standard & Poor's and Fitch have placed Catalan debt on negative watch this week, signaling an increased chance of a downgrade. In a note Friday morning, analysts at Spanish bank Bankinter SA said a EUR16 billion ($18.7 billion) takeover of Barcelona-based highway-management company Abertis by Italy's Atlantia SpA, which is close to approval by Spanish authorities, could be delayed due to the political uncertainty in the region.