Separatists win regional elections in Spain's Catalonia

Separatists in Spain's Catalonia won regional elections but failed to get the resounding mandate they need to push convincingly for a referendum on independence.  Catalan President Artur Mas, who has implemented unpopular spending cuts in an economic crisis, had called an early election to test support for his new drive for independence for Catalonia, a wealthy region in northeastern Spain.  Voters handed almost two thirds of the 135-seat local parliament to four different Catalan separatist parties that all want to hold a referendum on secession from Spain.  But they punished the main separatist group, Mas's Convergence and Union alliance, or CiU, cutting back its seats to 50 from 62. That will make it difficult for Mas to lead a united drive to hold a referendum in defiance of the constitution and the central government in Madrid.  The result will come as a relief for Spanish Prime Minister Mariano Rajoy, who is battling a deep recession and 25 percent unemployment while he struggles to cut high borrowing costs by convincing investors of Spain's fiscal and political stability.  Mas, surrounded by supporters chanting "independence, independence", said he would still try to carry out the referendum but added that, "it is more complex, but there is no need to give up on the process."  Traditional separatists the Republican Left, or ERC, won the second biggest presence in the Catalan parliament, with 21 seats. The Socialists took 20 seats. And Rajoy's centre-right People's Party won 19.  Three other parties, including two that want a referendum on independence, split the remaining 25 seats. ECFR's Torreblanca said the Catalan elections were similar to those around Europe in that economic woes have benefited marginal political groups, while larger, traditional parties have lost ground.  Catalonia, with 7.5 million people, is more populous than Denmark. Its economy is almost as big as Portugal's and it generates one fifth of Spanish gross domestic product.  After a decade of overspending during Spain's real estate boom, Catalonia and most of the country's other regions are struggling to pay state workers and meet debt payments. Unemployment has soared and spending on hospitals and schools has been cut.  Mas was one of the first Spanish leaders to embark on harsh austerity measures after Catalonia's public deficit soared and the regional government was shunned by debt markets.