Spain ruling party to make new Catalonia proposal

Spain's ruling Socialist party will soon present a new proposal to try to break a deadlock in discussions on greater independence…

Spain's ruling Socialist party will soon present a new proposal to try to break a deadlock in discussions on greater independence for the northeastern region of Catalonia, a top minister said today.

Catalonia wants a new autonomy statute that would recognise it as a nation within Spain, extend its fiscal and judicial powers and make it compulsory for public officials to speak Catalan.

Talks have been held up by disagreement over Catalonia's financing and the use of the word "nation", which has angered Spain's conservative opposition and raised questions over whether the statute would violate the country's constitution.

"We still believe that we can get over our differences on these points as well and reach an agreement," Deputy Prime Minister Maria Teresa Fernandez de la Vega told a news conference after a weekly cabinet meeting.

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"But at the same time we think that time has run out for negotiation and that we've reached the point where we have to take decisions," she added.

The Socialists had hoped to agree on an amended version of the statue with Catalan parties by today but instead, Fernandez de la Vega said they would present a new proposal and hoped to reach a final agreement "in the next days or weeks."

"It's true it's taken longer than expected but I don't believe this means this has been a failure. While we are still talking there is the possibility of a deal," Fernandez de la Vega said.

Prime Minister Jose Luis Rodriguez Zapatero, a strong supporter of devolved government, is committed to revising Catalonia's statute but the issue has deeply divided Spain with many fearing it could herald a wider break-up.