Political Instability is the New Normal in Spain
Spain is currently under a period of political instability. The acting Social Democratic government - winner of April’s general election with 7.5 million votes and more than 28% of the vote share - was not able to reach an agreement with left-wing Podemos or liberal Ciudadanos, condemning the country to hold its fourth general election in four years.
What to expect from political actors and how this situation will affect the economy are the key questions to be answered as we enter another pre-electoral period. Spain is heading to its fourth general election in four years, after its political parties failed to reach a governing deal in the wake of the inconclusive 28 April polls. Despite months of negotiations, no agreement has been reached between the Social Democratic Party (PSOE) and its most likely partner, left-wing Podemos. Acting Prime Minister Pedro Sánchez was also unable to strike any kind of deal with the two other biggest parties on Spain’s political spectrum, the conservative Popular Party (PP) and Ciudadanos (Liberal-Democrats).
The general election of April produced a fragmented parliamentary scenario. The Social Democrats (PSOE), though being the clear winners in the ballots and the only political party that could head a future government with 123 seats – the conservative Popular Party was second with 16.7% of the vote share and 66 seats -, were left short of a majority and forced to reach an agreement with other political groups in order to govern.