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Bloomberg
Spain is headed for its fourth election in as many years in November as the latest failure to produce a governing alliance highlighted the increasingly fractured state of its politics.
“Spain needs stability, moderation, a progressive government — it doesn’t need deadlock,†acting Prime Minister Pedro Sanchez said in a stormy parliament session as political opponents assailed him for taking the country to a new ballot. He spoke after King Felipe VI last night concluded there was no candidate with enough support to form a government and set Spain on course for another national vote on November 10.
Spain has become increasingly ungovernable since the conservative People’s Party lost its majority four years ago amid a flurry of corruption scandals. With the Catalan push for independence and the financial crisis helping to splinter the political map, Sanchez failed to piece together a majority despite winning almost twice as many seats as the second-placed PP in last April’s election.
His strategy now will be to peel votes away from the anti-austerity party Podemos and Ciudadanos to give him a stronger hand in government negotiations after the November ballot. Recent polls have shown Sanchez’s appeal to the center-ground is playing well with voters. A new ballot could give the Socialists the chance to boost their number of parliamentary seats from the 123 it has now and edge closer to the 176 needed for a majority.
While the economy continues to outpace other major euro-area economies, growth slowed more than expected in the second quarter and the political gridlock leaves Spain with no clear direction as Catalan separatists plot further unrest, the UK risks heading for a no-deal Brexit and global trade disputes increase.