Spain’s Left-Wing Parties To Block Mariano Rajoy-Led Government

A pair of upstart parties have rocked Spain’s traditional two-horse race in the country’s general election, with the ruling conservatives winning the most votes but falling far short of a parliamentary majority and risking being booted out of power.

Rajoy, seeking a second term, said he will “try to form a stable government'” but has no immediately obvious partner to do that.

The Socialists won 90 seats, their worst result ever, behind the PP with 123 seats.

This means Rajoy will have to join with either the Socialist party, or newcomers Podemos and Ciudadanos, to form a coalition or minority government.

The Spanish president and head of the PP, Mariano Rajoy, said on Monday that Spanish King Felipe VI will dissolve parliament if the parties fail to reach a power-sharing agreement, necessary for parliament to elect the next president.

Spain didn’t need a financial bailout like others in the 19-country eurozone, such as Greece and Portugal, but the Popular Party government has been pursuing relatively tough budgetary policies and wide-ranging economic reforms. If no candidate secures a majority within two months of the first vote, new elections have to be held.

“Now it’s up to the PP to try and form a government…but the Socialists will vote “no” to Rajoy and the PP”, Luena announced.

The inconclusive vote heralded a new era of pact-making, shattering a two-party system between PP and PSOE that has dominated Spain since the 1970s, with the surge from Podemos – the latest of several strong showings by populist parties in European elections – giving it a potential role as kingmaker.

“Millions of Spaniards have decided that Spain is going to change”, said Ciudadanos’ leader Albert Rivera.

So what we are seeing here is the result of not having an economic plan from the central government and from some dispute that is taking place between the Socialists and the main party of Mr. Rajoy’s.

“Podemos would not permit a PP government, either actively or passively”, Podemos leader Pablo Iglesias told reporters, meaning that his party will neither vote for PP rule nor abstain in a parliamentary vote on a new government.

In practise, unless the Socialists can be talked into supporting that option, Spain could be contemplating a period of weak minority government or new elections in the new year.

And the prospect of weeks of political uncertainty saw the Spanish stock market slump 2.5 per cent in afternoon trade.

“The only way to a stable situation would be a grand coalition in the German style”, Jose Ramon Pin, professor of public administration at the Barcelona-based IESE business school, said in an interview. He said his party will take time to analyze the situation calmly before contacting the other political leaders. “And put Spain and its government and stability ahead of everything else”.