BARCELONA: The president of Spain’s Catalonia region arranged and then hastily canceled an official address Thursday amid speculation that he might back off a full independence bid by calling a snap election.
Later Thursday, Catalonia’s Parliament is expected to debate how to respond to plans by Spanish authorities to take direct control of the prosperous northeastern region, home to 7.5 million people.
The Catalan issue has led to Spain’s deepest political crisis in the four decades since the country restored democratic rule after Gen. Francisco Franco’s dictatorship.
Catalonia has been in a standoff with Spain since a disputed Oct. 1 referendum on independence. Those who voted were overwhelmingly in favor, but less than half of eligible voters went to the polls.
Still, Catalan President Carles Puigdemont has said the referendum, which was outlawed by Spain’s constitutional court, gave him the mandate to declare independence.
But so far he has stopped short of proclaiming a new republic, saying he wants to give the Spanish government a chance to negotiate.
Madrid, for its part, insists it cannot negotiate secession, and Prime Minister Mariano Rajoy is seeking to activate constitutional powers that will allow the government to take over control of much of the autonomous region’s affairs. The Spanish Senate is scheduled to approve the plan to trigger Article 155 of the Constitution on Friday.
Two parliamentary officials told The Associated Press that Puigdemont had offered through mediators to call the snap election if the central government dropped the takeover bid, but Rajoy’s ruling Popular Party refused.
The officials spoke on condition of anonymity as the discussions were not being made public.
Popular Party Sen. Javier Arenas said a call for new regional elections would not be enough to stop the Senate. The Spanish government said it would not comment until after Puigdemont makes his stance clear.
The leading opposition Socialist party, meanwhile, says the government must stop the intervention process if Catalonia calls elections within a constitutional framework.
Puigdemont risks being charged with rebellion, something that could land him in jail.
A sudden announcement Thursday morning by Puigdemont’s office that the president would address the media fueled speculation he might be about to back off an expected full declaration of independence.
Quoting unnamed government sources, Catalonia’s main newspaper La Vanguardia reported he was planning to dissolve the regional Parliament and call a fresh election for Dec. 20.
It is not clear, however, that an election would solve any of Spain’s problems with Catalonia as polls consistently show pro-independence parties would likely again win most seats.
Regional vice president Oriol Junqueras, who represents a harder pro-independence line in the ruling coalition, told The Associated Press on Wednesday that the Spanish government had left Catalonia “no other option” but to push ahead with the secession bid.
Puigdemont’s Cabinet, including Junqueras, held frantic meetings overnight and on Thursday morning. They were joined by the regional Parliament’s speaker and representatives of Assemblea Nacional Catalana and Omnium Cultural, the grassroots organizations that have been key in the independence push.
The political confusion came as thousands of university and high school students took to the streets to protest Madrid’s takeover plans.
The protesters, many draped in the red and yellow Catalan flag and holding banners calling for independence, marched through central Barcelona, blocking several nearby streets as they headed to the government palace where Puigdemont was expected to speak.
The atmosphere was festive as they marched past the Barcelona headquarters of Spain’s national police shouting “out with the occupation forces,” a slogan that has become ubiquitous in protests since police trying to halt the independence referendum clashed violently with voters.
Some protesters sang “Els Segadors,” the Catalan official anthem. One student leader shouted into a microphone: “Carles, don’t take a step backwards ... don’t be a coward!“
Another protester, 17-year-old high-school student Albert Salgueda, said he would be disappointed if Puigdemont called elections.
“We think the only solution is a declaration of independence. We have come too far to go back now,” he said. If elections were called, “we will go on strike and stop the country. This is the point of no return.”
But not all the demonstrators were in favor of independence.
Seventeen-year-old Martina Gallego said that while she didn’t want Catalonia to secede from Spain, she objected strongly to how the Spanish government is treating the region.
“They are taking all our rights of autonomy away,” she said. “I’m not in favor of independence, but I don’t think this is right.”
Confusion as Catalan president cancels address
Confusion as Catalan president cancels address
Saudi Arabia’s $346 million lifeline for Yemen
- New SR 1.3 billion package targets salaries, liquidity shortages and state stability at pivotal moment for Aden government
- Economic backing reinforces reform momentum and positions security as a foundation for Yemen’s long-term recovery
LONDON: When Riyadh announced on Wednesday a new SR 1.3 billion ($346.6 million) package to support Yemen’s government budget, salaries, and operational costs, it underscored more than a financial gesture. It reaffirmed a steady doctrine: diplomacy through economic stabilization.
Saudi Arabia’s military and humanitarian engagement in Yemen has long drawn global attention. Yet its economic role — through direct budgetary support, deposits, and large development projects — has been equally central to shaping the country’s fragile path toward recovery.
The latest aid signals Riyadh’s conviction that fiscal stability underpins enduring political and security progress.
The Kingdom has rolled out numerous economic and humanitarian initiatives in recent years.
Project Masam, a Saudi-funded demining program launched in June 2018 under KSrelief and in partnership with Yemen’s Executive Mine Action Center, has cleared more than 450,000 explosive devices.
In September 2025, KSrelief and the UN migration agency, IOM, launched two $4.45 million projects: one replacing costly water trucking in Ma’rib with permanent water systems and the other rehabilitating education facilities in Aden, Lahj, and Taiz for conflict-affected communities.
This builds on the Saudi Program for Development and Reconstruction of Yemen’s portfolio of hundreds of infrastructure projects spanning education, health, water, energy, transport, agriculture, fisheries, and governance capacity-building, offering a lifeline to millions amid what the UN has often called the world’s worst humanitarian crisis.
Yet this directive, guided by the Saudi leadership and channeled through the SDRPY, comes at a turning point for Yemen’s governance.
Fresh from recent leadership changes, the country faces acute economic strain. Public institutions grapple with severe liquidity shortages and salary arrears that threaten to erode what little trust remains in the state.
The SDRPY package is intended to strengthen economic, financial and monetary stability, enhance government capacity, improve governance and transparency, and empower the private sector to drive sustainable growth.
With a gross domestic product of just $19-20 billion, ranking roughly 125th in the world, the package is designed to kickstart Yemen’s derelict economy and break the vicious cycle whereby collapse fuels aid dependency, rendering the state all but ungovernable.
“There is no doubt that the recent Saudi support to the Yemeni government comes at an important time, following the formation of the new government headed by Dr. Shaea Al‑Zandani and its return to the interim capital Aden to manage affairs from within the country,” Gulf analyst Abdulhadi Al-Habtoor told Arab News.
“As Saudi Defense Minister Prince Khalid bin Salman announced, the support is meant to cover operational expenses and salaries, responding to the urgent needs of the Yemeni government.
“In my view, this assistance will also help the government continue the economic reforms it began in the past period, with a focus on transparency, combating corruption, and unifying state revenues under the Yemeni central bank.”
Yemen’s public payroll — the lifeline of any society — has nearly collapsed. Teachers, soldiers, medical staff, and administrative workers in government-controlled areas have gone months without pay.
Even when salaries do arrive, rampant depreciation of the Yemeni rial has eroded their value, forcing families to borrow money, sell belongings, or skip meals to survive.
Economically, the package targets Yemen’s gravest structural challenge: the inability to pay around half a million civil servants regularly.
Saudi officials said the funds will bolster the salary component of Yemen’s budget, ensure consistent disbursements, and lay the foundations for long-term financial stability.
“Yemen remains Saudi Arabia’s top regional priority,” Salman Al-Ansari, a Saudi geopolitical researcher, told Arab News. “Saudi Arabia is the world’s largest humanitarian and development partner to Yemen, providing more than $20 billion in support over the past decade.
“More than two million Yemenis live and work in the Kingdom, reflecting the deep human ties between our peoples. Paying salaries to our brothers and sisters in Yemen is only one part of a broader Saudi commitment to help Yemenis rebuild their lives and restore stability.”
The implications stretch beyond payroll. By circulating liquidity across Yemen’s regions, the package aims to restore purchasing power, stabilize household incomes, and revive confidence in local markets.
Over time, this could reactivate small businesses, strengthen supply chains, and weaken parallel economies run by militias and informal networks — bringing a semblance of normalcy to a country where despair once seemed all-consuming.
“We should also not forget that this Saudi support came after the recent events in eastern Yemen (Hadramout and Al‑Mahra) and the unrest caused there by the Southern Transitional Council before its dissolution — developments that negatively affected the living conditions of residents,” said Al-Habtoor.
“This latest support is expected to restore normalcy across the liberated provinces, reinforce the unity of the legitimate government’s ranks, and strengthen efforts to confront the Houthi terrorist group, which still controls the Yemeni capital, Sana’a.”
Riyadh’s approach stands out for its continuity.
Since 2012, Saudi Arabia has injected an estimated $12.6 billion in economic assistance to Yemen — through deposits at the central bank, monetary transfers, and direct grants — to avert fiscal collapse and curb the inflationary spiral that has undermined local governance.
The aid aligns with the Kingdom’s core regional narrative: security and development are inseparable.
Saudi Defense Minister Prince Khalid bin Salman recently emphasized that Riyadh’s support “embodies the Kingdom’s commitment to strengthening security and stability and contributing to building a better future for Yemen and its people.”
This logic has shaped much of Saudi Arabia’s current strategy in Yemen: prioritizing gradual economic rehabilitation — through liquidity support and targeted projects — over grand reconstruction pledges.
The Defense Ministry’s statement in January that Saudi Arabia had launched 28 developmental projects worth SR 1.9 billion across key sectors including health, energy, and education solidified this integrated approach: stabilizing essential services while re‑energizing public infrastructure.
In Yemen, such measures carry profound social and political weight. Regular salaries and operational funding signal legitimacy, keeping public employees connected to the state apparatus and preventing the hollowing out of governance.
In a landscape long defined by fractured authority, financial continuity becomes a simple act of state‑building.
Critics, however, note that the scale of need dwarfs the amount of aid. Yemen’s economy — operating at a fraction of pre-conflict capacity amid oil export blockades, inflation spikes, and declining donor support — is projected to have shrunk 1.5 percent in real GDP in 2025 and remains institutionally divided.
Yet, from Riyadh’s perspective, short‑term stabilization must precede structural change, a philosophy that echoes its domestic economic doctrines alike, where fiscal buffers unlock diversification.
The $346 million support, then, functions on two intertwined fronts: a humanitarian lifeline for millions facing wage insecurity, and a geopolitical anchor preserving Yemen’s sovereignty against further collapse.
Analysts view it as calibrated diplomacy: less transactional relief, more sustained leadership in a volatile neighborhood vital to Saudi interests.
As Yemen navigates yet another uncertain year, Saudi Arabia’s latest support may not solve the crisis, but it reiterates a principle increasingly central to Riyadh’s foreign policy: that economic endurance is the cornerstone of security.
