Catalonia Election & Independence Referendum Results: CiU Fails To Gain Absolute Majority In Parliament; Referendum Hangs In The Balance

Catalan President Artur Mas, from the center-right nationalist coalition Convergencia i Unio (CiU), will continue running the regional government in northeastern Spain after reaching a deal with other parties, the BBC reported on Monday. Mas hoped his party would win absolute majority in the Catalan parliament in order to pass an independence referendum.

According to the BBC, CiU continues to hold the largest number of seats in parliament but lost about 12 seats, leaving it short of the absolute majority. However, a source close to the president told the BBC that the referendum is "still the plan."

In order to achieve that, the CiU would have to join forces with fellow pro-independence party, Esquerra Republicana de Catalunya (ERC), which more than doubled its number of seats in parliament. The source added that the partnership between CiU and ERC "has to be possible" because "there is no other alternative."

However, differences between the two parties over Mas' economic reforms and spending cuts may hinder a deal on the referendum. Despite disagreements over economic reforms, the CiU and ERC agree that Catalonia is treated unfairly by the Spanish central government, the BBC reported. Both parties claim that Catalonia pays 16 billion Euros more than it receives back from the national treasury each year.

The issue of independence will now become harder to solve with no clear referendum. Many Catalans are also worried about the economic effects independence could bring. A poll conducted by El Pais newspaper prior to the election on Sunday revealed that almost half of Catalans support independence, but that support drops to 37 percent if it means being kicked out of the European Union.

Being removed from the EU could mean that business move their headquarters away from Catalonia and back to Spain, severely depleting the Catalan job and trade markets. It would also force Catalonia to enter the long process of joining the EU, which could be vetoed by a vengeful Spain. 

Despite the pro-independence movement in Catalonia, the central government in Madrid will not make independence easy. If Catalonia were to gain independence, it could lead other separatists in the Basque region and Galacia to follow suit, ending in the collapse of Spain.