It is a phase of unprecedented ungovernability for the country: the only certainty is that the next government will have to be supported by a coalition yet to be determined and that is very reminiscent of the Italian political scene.
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Rajoy also said he would be open minded during those talks.
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For more than 30 years, the Popular Party (PP) and Socialists had alternated power but millions of Spaniards exasperated with austerity measures and repeated corruption scandals voted relative newcomers Podemos and center-right Ciudadanos into third and fourth place.
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“The Popular Party needs to try to form a government”.
Spanish Prime Minister Mariano Rajoy will meet with Sanchez to launch complicated talks on forming a coalition or minority government after his party won the most votes in national elections but fell short of a parliamentary majority.
If forced out of government, Prime Minister Mariano Rajoy and his Popular Party would become the third European victims this year of a voter backlash against austerity – following elections in Greece and Portugal seen as ballot box rebellions against unpopular tax hikes and spending cuts invoked during the eurozone’s debt crisis.
The intention to form a government announced by Rajoy comes shortly after a similar announcement by the Socialists, who said they would vote in Parliament against the formation of a new PP-led government, making nearly impossible a scenario allowing the current prime minister to remain in power.
The results mean parliament will be made up of four main groupings with significant clout, as opposed to the usual Popular Party and Socialists.
Meanwhile, even as the economy recovers, it still feels like “a pretty bad recession to most people in Spain”, said Mark Weisbrot, co-director of the Center for Economic and Policy Research.
If the parties fail to come to an agreement before the two-month deadline between the first parliamentary session and the election of the president, the Spanish king can dissolve parliament and declare new elections.
Rajoy’s future as leader of the PP is now in doubt, but he will be expected anyway to seek out a political deal with the new centrist Ciudadanos (Citizens) party, which was on course for between 47 and 50 seats.
If there is still a deadlock within two months of the first vote, the king must call new elections. The nominated party leader must garner a majority of deputies’ votes in Parliament in a first round to take office, or the most votes in the second round.
Moody’s has maintained Spanish bond ratings at Baa2 with a positive outlook, but said Monday it considered the political upheaval to be “credit negative”.
“The results are so close, but Spain is not like Germany and will not form a grand coalition”, said Rodrigo Serrano, a retired 67-year-old and former coach company owner at a Ciudadanos supporters event in Madrid.
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From Spain’s “Nueva Política” to Bernie Sanders and Donald Trump, outsider candidates and parties are catching fire, creating new spaces for political revolution.
