The Wall Street Journal - 19.10.2019 - 20.10.2019

(Jacob Rumans) #1

THE WALL STREET JOURNAL. **** Saturday/Sunday, October 19 - 20, 2019 |A


In the evening, the protests
in central Barcelona turned vi-
olent when riot police clashed
with masked protesters who
erected makeshift barricades
and set trash cans on fire, us-
ing slingshots to hurl rocks and
debris. Police responded with
tear gas and rubber bullets.
Friday marked the fifth and
biggest day of protest since
Spain’s Supreme Court on Mon-
day sentenced nine Catalan
separatist politicians to be-
tween nine and 13 years in
prison for their role in an illegal
2017 independence referendum.
Former Catalan leader Car-
les Puigdemont, meanwhile,
turned himself in to Belgian
authorities after Spanish au-
thorities issued a Europe-wide
warrant for his arrest. He was
released pending a decision by
Belgian authorities on Oct. 29
on whether to extradite him.
Barcelona has seen acts of
violence and vandalism all
week. Authorities say around
400 people have been injured
and 128 detained since Monday
across Catalonia.
“They want to stop us from
achieving independence,” said
Elisenda Paluzie, the leader of
Catalan National Assembly, a
separatist group that helped
organize Friday’s marches.

Catalonia, a region of 7.
million people, is Spain’s
wealthiest and has long har-
bored separatist sentiment. It
has its own language and sig-
nificant autonomy on health
care and education. The region
also manages its own police.
The renewed calls for inde-
pendence are testing the ap-
proach of acting Prime Minis-
ter Pedro Sánchez, whose
Socialist party supports dia-
logue with Catalonia’s separat-
ists. In response to the latest
unrest, Mr. Sánchez said the
Spanish state would defend
the right to demonstrate
peacefully “but will not toler-
ate the imposition of violence.”
Catalonia’s pro-indepen-
dence regional government
also condemned the violence,
blaming it on infiltrators.
The region’s leader, Quim
Torra, said he would call for a
second referendum on Catalan
independence if other Catalan
parties agree.
In an interview with The
Wall Street Journal on Friday,
he said he wanted more con-
cessions from Madrid on Cata-
lan self-determination.
“I think Spain has to listen
to this outcry for justice and
freedom and has to make a po-
litical proposal,” he said.

BARCELONA—Hundreds of
thousands of protesters con-
verged in Barcelona for a gen-
eral strike, paralyzing the city
as violent clashes erupted
amid renewed calls for Catalo-
nia to secede from Spain.
The latest wave of unrest,
triggered by the jail sentenc-
ing of separatist leaders this
week, has made the longstand-
ing issue of Catalan indepen-
dence once again central to
Spain’s political debate as the
country heads to parliamen-
tary elections on Nov. 10.
Mass demonstrations start-
ing out from different parts of
Catalonia streamed into the
regional capital Barcelona on
Friday, blocking major boule-
vards amid heavy police pres-
ence. As of Friday evening, 58
flights had been canceled.
Outside the city’s best-
known monument, artist An-
toni Gaudí’s Sagrada Familia,
hundreds of protesters draped
in pro-independence flags
gathered to call for the release
of their political leaders,
chanting “Our sentence is inde-
pendence!” and other slogans.
In response to the rally, the ba-
silica was closed for the day.

BYMARGHERITASTANCATI
ANDPIETROLOMBARDI

Protests for Catalonia’s


Secession Draw Violence


Catalan demonstrators blocking a road in Sant Just Desvern, Spain, Friday as part of a general strike.

JUAN MEDINA/REUTERS


Looser Ties
BorisJohnson'sBrexitdeal
impliesamoredistantfuture
relationshipbetweentheU.K.
andtheEUthanTheresaMay's
oranabruptsplit.

Source: UK In A Changing Europe

–10% –5 0

May

Johnson

No-deal exit

Tradeeffectsonly
Includingestimated
productivityeffects

–1.7%

–2.

–3.

–4.

–6.

–8.

Estimated change in percent
in U.K. GDP per capita after 10
years vs staying in EU

WASHINGTON—An interna-
tional plan to reshape corpo-
rate taxation for the digital
age drew support from finance
ministers of the largest econo-
mies as the proposal’s authors
begin working through mess-
ier details.
The Group of 20 finance
ministers and central bankers
considered the plan Friday and
welcomed recent progress, ac-
cording to a statement from
Japan’s finance ministry,
which led the talks. The G-
urged the process forward,
calling for an agreement on
the outlines by January. Offi-
cials have been aiming for a
full political consensus by
June 2020, followed by
changes to individual coun-
tries’ laws and treaties.
“The goal is to move as fast
as possible—if we have politi-
cal agreement,” said Pascal
Saint-Amans, the senior tax
official at the Organization for
Economic Cooperation and De-
velopment, who is running the
process.
Countries are debating new
global rules to coordinate cor-
porate taxes, in response to
concerns that tech companies
avoid taxes in jurisdictions
where they have customers but
report little profit. Without an
agreement, countries will con-
tinue creating unilateral taxes,
such as France’s new levy on
digital companies, which ap-
plies a 3% tax on revenue.
Even as G-20 finance minis-
ters gathered in Washington,
Italy’s government this week
confirmed it would impose a
similar 3% tax on revenues of
companies providing digital ser-
vices, a levy known as the “web
tax” that will hit large U.S. com-
panies. Spain, the U.K., Austria,
Australia and Chile have an-
nounced similar actions.

BYRICHARDRUBIN

Nations


Support


Corporate


Tax Plan


LONDON—British Prime
Minister Boris Johnson wooed
lawmakers in a last-minute
charm offensive to win a deci-
sive parliamentary vote on his
Brexit deal on Saturday, focus-
ing on wavering euroskeptic
Conservatives and opposition
Labour Party lawmakers.
A win would mark an aston-
ishing political victory for the
Conservative Party leader and
pave the way for the with-
drawal from the European
Union of the bloc’s foremost
military power and second-
largest economy. A defeat
would likely mean another de-
lay to a Brexit saga that has
already lasted more than three
years and transformed the
U.K.’s normally staid politics.
Parliament is due to sit on
the weekend for the first time
since the 1982 Falklands War
to consider the revised Brexit
plan agreed upon by Mr. John-
son and European leaders on
Thursday. The vote is likely to
come down to just a handful
of ballots either way. Mr.
Johnson lacks a majority in
Parliament and needs to bring
on board party rebels and po-
litical opponents to prevail.
Mr. Johnson has already
lost his party’s Northern Irish
allies. Many of the pro-Brexit
Conservative lawmakers who
opposed a deal negotiated by
Mr. Johnson’s predecessor
have made positive noises but
have yet to commit. Opposi-
tion Labour lawmakers repre-
senting Brexit-backing dis-
tricts will be pivotal to his
success or failure.
Conservative whips were
working overtime to build
support on Friday. Downing
Street officials said that an ef-
fort to reach out to Labour
lawmakers who support Brexit

BYJASONDOUGLAS
ANDMAXCOLCHESTER

was also under way and that
the prime minister was spend-
ing the day on the phone to
win over potential supporters.
The government’s biggest
selling point: Britain can fi-
nally turn the page on a politi-
cal psychodrama that has
dominated the country’s poli-
tics since 2016. “This is the
opportunity to get Brexit
done, to turn the page and to
allow the country to move for-
ward,” Foreign Secretary Dom-
inic Raab told the British
Broadcasting Corp. on Friday.
A defeat would require Mr.
Johnson to seek a three-month
extension for Brexit to Jan. 31
under a law passed by Parlia-
ment last month in the teeth
of fierce government resis-
tance. Withdrawal has already
been twice postponed.
A delay would set the stage
for a national election in the
coming months. Mr. Johnson,
who has gained ground in polls

WORLD NEWS


since taking office in July, is
hoping such a vote would de-
liver him the comfortable ma-
jority needed to get Parliament
to endorse his Brexit plan.
For now, the ruling Conserva-
tives have 287 voting lawmak-
ers but Mr. Johnson will need
320 to get his deal over the line.
Mr. Johnson’s task will be
made harder by the opposition
to his deal of Northern Ire-
land’s Democratic Unionist
Party. Ostensibly Conservative
allies, the DUP on Friday said
its 10 lawmakers would vote
against Mr. Johnson’s with-
drawal package in Saturday’s
vote because it treats North-
ern Ireland differently from
the rest of the U.K. in areas
such as customs and tax.
One potential pool of votes
is the fervently pro-Brexit
wing of the Conservatives, of-
ten known collectively as the
European Research Group.
Mr. Johnson’s prospects for

winning over this group are
mixed. Some, such as Jacob
Rees-Mogg and Priti Patel,
were given government jobs
by Mr. Johnson and should
back the deal. A handful have
signaled they will support it.
Mr. Johnson’s charm offen-
sive will also focus on 22 for-
mer Conservatives who quit or
were kicked out of the party
for opposing the prime minis-
ter’s Brexit strategy. Many sup-
ported Theresa May’s Brexit
deal but clashed with Mr. John-
son over his early enthusiasm
for leaving without a deal. Now
that he has struck a deal, many
are likely to swing behind him.
The math means lawmakers
from the main opposition La-
bour Party will be critical if Mr.
Johnson is to prevail on Satur-
day. Six supported Mrs. May’s
deal in defiance of party or-
ders. Mr. Johnson will need to
persuade more than twice that
number to back his deal to win.

Johnson Presses for Brexit Backers


U.K. leader rushes to
assemble enough
parliamentary votes for
his deal to leave EU

Britain's Parliament on Saturday will vote on a revised Brexit deal. Above, a Brexit supporter and opponent in London on Thursday.

MATT DUNHAM/ASSOCIATED PRESS

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