I believe they are only a region but have strong regional pride or something. This is why they are governed by Spain's Football Assoc and the reason the FA cancelled the game is because they didn't want the Catalan team to wear out any players that they wanted to call up to the Spanish team. Spain has very strong regional identity; the Basques, of course, are the most well known of the regions of Spain (though they cover some of France, too), but all the areas, Andalucia, Galicia, Catalonia, are fiercely proud of their heritage, and - from what I've seen - view themselves as regional first, then national. Its, strangely, exactly the opposite of France (though that is changing now). As far I know, neither the Basque team and the Catalonian team are members of FIFA, though I think Catalonia played against Wales not so long ago.