Prime Minister Mariano Rajoy’s Cabinet is meeting this morning to scour the scope and timing of the measures the government will roll out to penalise the breakaway region and impose direct rule.
And they could use their powers to force the removal of Catalan leader Carles Puigdemont and call an early regional election as soon as January.
Mr Rajoy appears determined to apply article 155 of the Spanish Constitution for the first time in the country’s democratic history.
The article allows central authorities to intervene when one of Spain’s 17 autonomous regions fails to comply with the law.
The leader will need the approval from the country’s Senate but opposition parties have agreed to support him in revoking Catalonia’s autonomy.
Mr Puigdemont had threatened to call a vote in the regional parliament for an explicit declaration of independence from Spain.
But he must now contend with the threat of having his duties aken away along with his staff after the decision by the Government. And a representative could be put in his place.
On Friday, Spain’s King Felipe said that Catalonia will remain “an essential part of 21st century Spain.”
The monarch spoke of his concerns at a prize-giving ceremony for Spain’s prestigious Princess of Asturias awards.
He said: “Spain will deal with this unacceptable attempt at secession by using the Constitution.
“We do not want to give up that which we have built together.”
It is the second time that the King has waded in to voice his concerns over the Catalonia crisis.
But he received a standing ovation for his speech.
European leaders have also made indirect comments about the independence issue, which has brought a tense confrontation between Catalan secessionists and the Spanish government.
European Parliament President Antonio Tajani and European Commission President Jean-Claude Juncker threw their support behind Mr Rajoy’s efforts to keep Spain united, receiving loud applause at the Campoamor theater in the Asturias region.
Catalonia, which is home to 7.5 million people has undergone intense change after the referendum vote to leave Spain.
Mr Puigdemont, a former journalist, has refused to renounce independence, citing an overwhelming vote in favour of breaking away at a referendum on October 1.
The prolonged standoff has caused hundreds of companies to move their headquarters outside Catalonia and prompted the Spanish government to cut its economic growth forecast. The region accounts for a fifth of Spain’s economy.