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Socialists Lose Big In Spain But Can’t Accept It
In common with all democratic nations, no mainstream political party has been able to produce a panacea for the economic difficulties; this has produced voter disenchantment and allowed new parties to emerge.
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“Internally, the main source of uncertainty is associated with the evolution of economic policies, given how much the reform agenda and budget policies in particular affect confidence”, the Bank of Spain said in a monthly report. In the plaza outside of Madrid’s Reina Sofia art museum, Iglesias was greeted by thousands of excited Podemos supporters, who waved balloons in the party’s signature purple shade and chanted “Si se puede!”
Rajoy’s People’s Party lost a third of its lawmakers even as it beat out the Socialists to take the most votes and earn the first shot at forging a government. Given the unlikelihood of the PSOE entering a grand coalition with the PP, an anti-PP alliance of the PSOE, Podemos and regional parties is the second option. It’s news that should make the political establishment from Europe to the United States tremble in fear.
The political scene is no longer a two-horse race between the PP and PSOE, as 85% of the votes now belongs to four parties, if you include Podemos and Ciudadanos.
In the congressional procedure to vote in a new government, the PP would need the active support of at least one other large party in order to continue governing.
The Rajoy-Sanchez talks got under way at government headquarters, Madrid’s Moncloa Palace.
However, it is not easy for the left-wing parties to build a majority either.
The Socialists, already haemorrhaging support to Podemos, will be mindful of what happened to Greece’s once powerful centre-left party, Pasok, which has seen its support plunge since it joined a coalition led by the centre-right New Democracy in 2012.
The close result magnifies the importance of small separatist parties from Catalonia, which could try to extract concessions such as the promise of an independence referendum as the price for their support.
Meantime, once the new parliament and senate begin sitting from January 13 onwards, it will be up to King Felipe VI to put forward a candidate for prime minister – giving a potentially important role to a man who was crowned only previous year.
Together they would be the only vaguely realistic two-party combination that could form an outright majority.
Ciudadanos has said it will abstain in the vote to allow the PP to govern in a minority but this would not be enough. Its economy went through a double-dip recession in 2008-2013 and unemployment tops 20 percent.
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Official results showed the PP won 123 seats – 63 less than in 2011 when it roared to victory with an absolute majority – with nearly 29 per cent of the votes.