Madrid to Catalonia: Drop bid for independence within 3 days

MADRID/BARCELONA: Catalan authorities must drop a bid for independence by Thursday, the Spanish government said, moving closer to imposing direct rule over the region after its leader missed an initial deadline to back down.

In a confrontation viewed with mounting unease in European capitals and markets, Carles Puigdemont failed on Monday to respond to an ultimatum from Madrid to clarify if he had declared independence. A regional broadcaster said he also planned to ignore a second deadline on Thursday.

Madrid had given him until 0800 GMT to clarify his position on independence with a "Yes" or "No", and until Thursday to change his mind if he insisted on a split.

In a letter to Spanish Prime Minister Mariano Rajoy made public on Monday, Puigdemont did not directly answer on the independence issue, instead making a "sincere and honest" offer for dialogue between the two men over the next two months.

In reply, Rajoy said Puigdemont's stance had brought Madrid closer to triggering Article 155 of the constitution, under which it can impose direct rule on any of the country's 17 autonomous communities if they break the law.

The terms of Article 155 on direct rule, which has never been applied, are vague. It says that when a region does not meet its constitutional obligations or other laws, the government "can adopt any measure needed to force those obligations to be met". The article's wording suggests that would include anything from taking control of regional police and finances to installing a new governing team or calling a snap election.