Catalonia held a controversial independence referendum earlier this month drawing the condemnation of leaders in Madrid and Brussels.
After a huge Yes victory during a polling day marred by police brutality, Catalonia initially signed a letter declaring independence before immediately suspending it.
Spain has since refused to entertain independence talks despite huge protests calling for peaceful discussion.
And today Catalan leader Carles Puigdemont said the regional parliament could vote on a formal declaration of independence from Spain if the central government failed to hold talks.
He has ignored a deadline to drop Catalonia’s secession bid and instead accelerated moves for an independent state.
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In response Madrid said it would take extreme steps and remove the autonomy of Catalonia.
Mr Puigdemont said: “If the government continues to impede dialogue and continues with the repression, the Catalan parliament could proceed, if it is considered opportune, to vote on a formal declaration of independence.”
He mate the letter public shortly before the 10am deadline (9am BST) he had been given by Spain to retract his independence claim passed.
In response, Spain threatens to completely remove Catalonia’s power of autonomy.
Madrid said Prime Minister Mariano Rajoy would trigger Article 155 of the constitution, suspending Catalonia’s autonomy.
A special cabinet meeting will be held on Saturday.
Dr Sally-Ann Kitts of the University of Bristol said Madrid’s decision to remove autonomy would only “harden the resolve” of pro-independent Catalonia campaigners.
She said: “Today in all likelihood the Spanish government will start the process to strip Catalonia of its autonomy through the application of Article 155 of the constitution.
“What isn’t clear to anyone is how this action will do anything other than harden the resolve of the more than three million people who turned out to vote on 1 October, in spite of the repeated brutal actions of the Spanish police.
“The confrontation between Catalonia and Spain remains without any resolution in sight as Spanish Prime Minister Mariano Rajoy continues to ignore the appeal for dialogue made last week by the Catalan President Carles Puigdemont.
“The Spanish state seems intent on pressing forward with the application of threats of judicial action against all those involved in what it describes as unconstitutional and illegal activities.”
This is a breaking story, more to follow…