Spain proposes constitutional reforms for Catalonia

A senior Spanish official says Madrid is open to holding talks with separatists on constitutional reforms and greater fiscal powers for the autonomous Catalonia region.

Spain’s Foreign Minister Jose Manuel Garcia-Margallo made the comment while speaking to journalists, politicians and businessmen in Barcelona, the Catalan capital, on Thursday.

"The government has since the very beginning wanted to start a dialogue that would solve this problem. And it probably involves a constitutional reform and a different system of regional financing," Garcia-Margallo said.

The top official acknowledged that Spain's existing system to finance its regions is "unfair."

A reform of Spain's constitution that recognizes Catalonia's distinct culture and language is "absolutely possible, viable and desirable," the minister added.

The minister also suggested that new financing system could cede control of some taxes to regions while reserving for the central government control over corporate tax and value added tax.

The foreign minister proposed that talks on the new financing system and reform should only take place after an upcoming regional election in Catalan.

The latest proposal comes as a massive rally is to be held in Catalonia’s regional capital city of Barcelona to mark the region’s “National Day” and also back Catalonia’s secession from Spain.

The large demonstration is deemed to be of great significance as it can turn into a power parade for pro-secession parties, which are expected to win the majority of seats in the region’s parliament in the upcoming elections due to be held on September 27.

Artur Mas, the president of Catalonia’s regional government, has vowed to intensify efforts for Catalonia’s independence if pro-secession parties emerge triumphant in the polls.

The Catalan president staged a symbolic independence referendum in November 2014 after the government in Madrid used the courts to block his bid to hold an official referendum. Nearly 80 percent of the 2.2 million people who took part in the vote backed secession, though the turnout was little more than 40 percent.

Catalonia, which consists of Barcelona, Girona, Lleida, and Tarragona, accounts for one-fifth of Spain’s economic output.

Many Catalans believe their economy would be more prosperous on its own, complaining that a high portion of their taxes go to the central government in Madrid.

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