BREAKING: Catalonia Declares Independence

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They should have just ran a campaign to defeat it at the ballot box.  The polls are close, which means it would likely fail anyways. Best case was going to be a kind of narrow pass, nothing like the Kurdistan vote the week before will be like.

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Obviously federal police destroying schools will convince those Catalans that they don't need independence.

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Why are they are taking a hardline?  Here in Canada and in the UK both didn't want Scotland or Quebec to leave, but neither government used such heavy hand to prevent them from holding referendums.  All Spain had to promise is if Catalonia left Spain would veto it's entry to the EU and even many Catalan nationalists would probably find that too much to stomach as I don't think any contemplated the idea of an independent Catalonia outside of the EU, it was always an independent Catalonia as a member of the EU. 

Canada and the UK don't have the ruling party be a bunch of Francoists. When Al Qaeda attacked in 2004, they blamed another separatist group, the Basques.

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Can't Spain just give Catalonia Scotland like devolved powers within a united and indivisible Spain?

It already has, Catalonia has had a devolved government since 1980 or so. Of course, unlike in the UK (where England has no devolved powers except for London) in Spain everyone got a devolved government.

Both countries are still considered unitary states though.

https://en.wikipedia.org/wiki/Federalism