Spain’s socialists say they would vote “no” to another People’s Party government

The risk is that as part of a coalition, Rajoy will have to make concessions on economic policy at the expense of Spain’s burgeoning economic recovery.

Four years after Madrid’s Puerta del Sol square was occupied by the anti-austerity Indignados movement-which gave rise to Podemos-supporters shouted “Yes, it’s possible!”

Left-wing Podemos has taken 69 seats, while the center-right Citizens Party has claimed 40 seats in the parliament.

An exit poll published by the TVE television station moments after polling stations across the country closed at 8pm indicated that the governing Popular Party (PP), led by Prime Minister Mariano Rajoy, has secured 26.8 per cent of the vote.

Sofia Mirandos, the Madrid city councilor for Ciudadanos – a centrist party that could be kingmaker if approached by the PP to form a coalition – told CNBC on Monday that her party could work with the Socialists.

Mr Rajoy, 60, told cheering supporters shortly after midnight that he would try to form a government but did not provide any details of how he might accomplish that goal.

Ahead of the elections, Rivera, for instance, had said he does not want to sign a deal with either the PP or the PSOE.

Polls predict the right-of-center Popular Party will get the most votes but not enough to retain its parliamentary majority.

At a polling station in Madrid’s trendy La Latina district yesterday, it was clear that the new parties had captured the imagination of the capital’s voters.

“I don’t understand, it’s very unfair”, said Marta de Alfonso Molero, a 48-year-old chemist who has voted PP all her life, speaking of the poor showing for the party.

He also spoke in English, saying “Spain is not going to be the same again, and we’re happy”. If the candidate is not immediately successful, Parliament has two months to elect a prime minister or call fresh elections.

At the daily press conference Monday, spokesperson Mina Andreeva congratulated Rajoy on behalf of the European Commission “for having won the greatest number of seats in parliament”. The PP’s main rival, the Socialist Party (PSOE), won 22pc.

Days or weeks of political negotiations are expected as the parties try to come up with a way to form a government.

The Socialists could be in the running if they clinch support from Podemos and other leftist groups and regional parties.

“Many people have lost their confidence in traditional parties”, said deputy leader Inigo Errejon.

In Spain the two-party era is over.

The fragmentation of the new Parliament emerging in Sunday’s vote must not be the reason for political paralysis, said Rajoy, given that that would be “enormously negative for (Spain’s) interests”. Another upstart party, Ciudadanos, is far behind with 15.2 percent.

“I congratulate the three Green MPs Rosa Martinez and Juantxo Uralde in the Basque Country and Jorge Luis in Aragon on their election and also Podemos for the historic level of support it won”.

Spain just held a major election, and things are about to change.

The government says turnout as of 6 p.m. (1700 GMT) was 58.4 percent.

Fairly complete results should be tallied by about 10:30 p.m. (2130 GMT).

“For the first time, those of us who didn’t experience the first democratic transition are experiencing a second one”, Rivera said. “Spain has changed. We wanted change and tonight we see more and more Spaniards want change, more dialogue, and above all, change with reform”.

The announcement by all other parties all but ruled out the possibility of Rajoy forming the next government, after Spanish voters switched allegiance.

Rajoy and his party are seeking a second term after ousting the Socialists in a landslide in 2011. “The system of taking turns in Spain is over”.

The PP won 123 seats in the election, with 29% of the vote, leaving them far from a majority in the 350-seat legislature.

Green party’s Natalie Bennett congratulates anti-austerity parties in Spain The Green Party is welcoming the huge electoral progress made by anti-austerity parties at the Spanish general election on Sunday (20 December).