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People hold Catalan separatist flags during a gathering. Image Credit: Reuters

Catalonia will hold a referendum on splitting from Spain on October 1, the head of the regional government said on Friday, setting the stage for several months of heightened confrontation with the central government which says such a vote is illegal and will not take place.

"The question will be 'do you want Catalonia to become an independent state in the form of a republic'," Carles Puigdemont said in a speech at the headquarters of the regional government.