The ruling coalition in Catalonia has called for an extraordinary session of the local parliament, probably to unilaterally declare independence. It will be held on Monday, October 9th.

Catalonia’s president Carles Puigdemont told the BBC that he will move towards a declaration in the upcoming days. His Junts pel Si party is a coalition of pro-independence Catalan parties. The junior coalition partner is CUP, which is a radical-left party that is pushing hard for independence.

Such a step be a final blow to any attempt to negotiate a climb-down on both sides. Calls for mediation and a dialog are coming from a few politicians, but they do not have the upper hand. Barcelona’s Mayor Ada Colau said she is sad but resigned, rejecting a unilateral declaration of independence and also rejecting a suspension of Catalonia’s autonomy, Article 155 of the Spanish Constitution.

Me he despertado triste pero no resignada.
Ni DUI ni 155.
Necesitamos más que nunca diálogo y puentes. Mediación y referéndum acordado

— Ada Colau (@AdaColau) October 4, 2017

Yesterday also saw a hard-line stance from Spain’s King. He did strike a comforting, uniting voice. He put the blame on Catalonia and ignored the police brutality.

Tensions in the rich northeastern region remain high after the vote on Sunday. The Spanish police used forcetrying to stop people from voting in a referendum that was struck down by the constitutional court.

So far, the euro has mostly shrugged it off. EUR/USD opened lower on Monday but quickly closed the gap. It trades in a narrow range.