BBC: 'Spanish PM Rajoy rebuffs Catalonia over budget powers' #news #politics #eu #usa

The Spanish prime minister has rejected a call from Catalonia's leader
for fiscal independence, days after a giant pro-autonomy rally in
Barcelona. Mariano Rajoy received Artur Mas for talks in Madrid at
which he told him that Spain's economic crisis had to be overcome
jointly, a statement said. Mr Mas said he was disappointed and did not
rule out early regional elections. The crisis has fanned an
independence movement in Catalonia, which produces a fifth of Spain's
economic output.

Last week, one and a half million people rallied in Barcelona, the
regional capital, in what was seen as a show of strength for the
pro-independence lobby. Correspondents say Mr Rajoy is wary of any of
Spain's regions seeking to break away amid the economic crisis. Early
elections in Catalonia could be seen as a referendum on autonomy,
piling pressure on the central government.

'Lost opportunity'

Mr Mas went into talks with the prime minister on granting Catalonia
powers to raise and spend its own taxes. Pro-autonomy leaders argue
that Catalonia pays a disproportionate level of taxes to Madrid in
relation to the central funding it receives. We lost an historic
opportunity in the understanding between Catalonia and the rest of
Spain" "Rajoy showed his opposition to the proposal for an economic
accord for Catalonia because it is not compatible with the Spanish
constitution," the prime minister's office said in a statement.

He told Mr Mas that the "very serious crisis [would] be overcome
through joint responsibility and unity, never through division or
institutional instability". "We lost an historic opportunity in the
understanding between Catalonia and the rest of Spain," Mr Mas said
after the meeting. "I would have liked to be able to say that there
was room for negotiation but the head of government himself told me
that he saw no way forward for the fiscal pact."

"If the negative answer to the fiscal pact is so obvious, then we will
have to take decisions in the next days," he added. Asked about the
possibility of calling early elections, he said: "All options are
open." A decision on early polls could be taken as early as next week
when the regional parliament holds its annual debate on the state of
Catalonia.

Several Spanish newspapers said Mr Mas could call snap elections for
25 November. The Spanish constitution bars any actual referendum on
independence for Catalonia, which has its own language. Mr Rajoy's
centre-right Popular Party won a resounding victory in Spain's general
election in November, in a vote dominated by the debt crisis.

http://www.bbc.co.uk/news/world-europe-19662574

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