Spain plans to hold early election in Catalonia next year

The Spanish government and the main opposition have agreed to hold an early election in Catalonia - effectively sacking the regional government.

A spokesman from the opposition Spanish Socialist Workers Party said on Friday that an agreement had been reached with Spain's government on holding a new election in Catalonia in January.

Spanish Prime Minister Mariano Rajoy said his government will announce special measures to take control of Catalonia after a cabinet meeting on Saturday, but he refused to confirm if the agreement includes plans to hold regional elections in January.

The special measures, including the suspension of Catalonia's political autonomy, are aimed at resolving the country's political crisis, but will likely inflame tensions. A protest is planned in Barcelona to coincide with the meeting.

Catalonia's government says it has the mandate to formally withdraw from Spain after an illegal referendum was held on 1 October, and does not want a new regional election.

The never-used-before Article 155 of the country's 1978 Constitution allows central authorities to take over all or some of the powers of any of the country's 17 autonomous regions.

Commenting on the unprecedented constitutional step he is taking, Mr Rajoy said: "The goal is double: the return to legality, and the recovery of institutional normalcy."

:: Spanish government says it will suspend Catalonia's autonomy

Approval from the Senate is required to implement the measure, but should pass easily and could do so as early as 27 October.

The move comes after Catalan leader Carles Puigdemont refused to drop the independence bid, demanding further talks with Mr Rajoy.

In Catalonia people responded to a call for direct action by withdrawing money from their bank accounts to put pressure on financial institutions which have moved their official headquarters to other locations in Spain.

Sky's Europe Correspondent Michelle Clifford, in Barcelona, said there were small queues outside branches of two of Spain's biggest banks-Sabadell and CaixaBank before they opened.

"Some people had decided to close all their accounts and transfer them to banks staying in the region. Others were symbolically taking out €155," she said.

A woman who had shut her account at Sabadell told her: "I came to close down my account with Banc de Sabadell. I withdrew all my money. Actually I left 40 symbolic cents just to be a nuisance to them.

"Itʼs one of many ways to protest, I know it is only symbolic, not very useful, but against the incomprehensible decisions they make we take small actions. Always peaceful," she added.

Another man told Michelle: "I came to withdraw money from the cash point. I'm conscious it is a completely symbolic action, but it is a way to express an annoyance and a grievance a lot of people have."

"Another woman, outside a branch of CaixaBank, said: 'I'll just tell you I couldn't withdraw €155 because the cash point wouldn't allow it," Michelle added.

The action was on a relatively small scale but thousands are expected to join Saturday's protest as the Spanish cabinet sets about taking control of the region.