Catalan leader proclaims independence, but postpones effects to negotiate.

BARCELONA (Reuters) - Catalan leader Carles Puigdemont proclaimed the region's independence from Spain on Tuesday, but said its effects would be suspended to allow talks with the Madrid government.

“I take the mandate that Catalonia should become an independent state in the form of a republic… I propose suspending the effects of the declaration of independence in order to hold talks to reach a combined solution,” Puigdemont told the regional Parliament in Barcelona.

Although Puigdemont did not explicitly ask the Chamber for support for the separatist declaration in a vote, a move that would have closed the door to a negotiated solution, the declaration plunges Spain into the unknown.

The Spanish government has already said that any unilateral declaration of independence would be illegal, and has vowed to act to "restore law and democracy" if the Parliament of the wealthy autonomous region in the northeast of the country goes ahead.

The Prime Minister of Spain, Mariano Rajoy, could adopt the unprecedented measure of dissolving the Catalan legislature and calling new regional elections, the so-called "nuclear option".

Madrid could also ask the courts to overturn a declaration of independence on the grounds that it is unconstitutional.

Despite repeated calls for dialogue with Madrid, the proclamation makes a negotiated solution more difficult, since Rajoy has stated that he will not talk to Catalan leaders unless they abandon their plans for separation.