The Spanish ruling party’s failure to win control in a key state election is a “serious setback” that casts doubts over the government’s ability to stick to its financial reforms, economists have warned.
Traders were alarmed by signs that Mariano Rajoy was losing popular support for his programme to reduce Spain’s burgeoning debts, without which the country may need a Greek-style bail-out.
The prime minister’s PP party won 50 seats in the [...]
by Mamta Badkar
Spain’s ruling People’s Party failed to secure a majority in Andalusia’s regional elections on Sunday. In his latest note, Nomura’s senior political analyst Alastair Newton said this would be a significant setback to efforts to bring in Spain’s deficit.
Constitutional autonomy in many of these regions makes party links crucial to determining the policies of the regional governments. From Newton:
“Governance of Spain’s regions is a key factor in deficit control, with [...]