Monday, July 18, 2016

Political uncertainty persists in Spain – Financial Journal

The chairman of Spain and the PP leader, Mariano Rajoy, concluded last negotiations the week with the main political forces in the country without an agreement to form a government.

Given this scenario, there is growing perspective they have to repeat the elections in November, after the two previous December and June, ended without a winner with a clear majority in congress.

a glimmer of hope opened when the Citizens leader, Albert Rivera, said that although will not support Rajoy, would abstain in the vote of investiture in August. This is still not enough and the Socialists Pedro Sanchez, the second parliamentary force, still, in his own words “today” opposing Rajoy. Though small, his statement left open the door to a possibility of agreement tomorrow if conditions change. This change could well now come from the decision of the UK to leave the European Union, which will increase volatility and economic uncertainty throughout the region.

However, a government formed under these circumstances would be weak and it could hardly promote the necessary reforms.

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