Thursday

19th Oct 2017

Spanish elections: 5th EU government to fall due to crisis

  • Spain gets ready to change course (Photo: cuellar)

With markets putting Spanish bonds in the cross-hairs, voters dismayed by the country's economic situation are expected to eject the incumbent government in parliamentary elections on Sunday (20 November).

Official opinion polls indicate a landslide victory for the opposition conservative People's Party (PP) who are set to win an absolute majority of anywhere between 190 and 195 places in the 350-seat lower house - their best result ever.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

The incumbent Socialist Party (PSOE), in power since 2004, will according to the same polls not win more than 121 seats - their worst result ever.

The economy has dominated the campaign. PSOE is widely being held responsible for bad management of the global credit crunch that burst the country's housing bubble and put millions of people out of their jobs and, as a result, their homes.

Unemployment today is at 20 percent - the highest in the EU. Almost half of all young people have no work.

"Employment is the most crucial thing for Spaniards today. And the PP are considered to be better at creating employment," Belen Barreiro, director of Fundacion Alternativas, a think-tank in Madrid with close ties to the PSOE, told this website.

But it is less the case that traditional left-wing voters have switched to support the right. Rather, disillusioned with the austerity of PSOE, they are simply likely to stay home.

Mariano Rajoy, Spain's likely new prime minister, has remained vague about his policy plans but indicated that he will cut spending, liberalise the labour market and put in place "a shock plan for entrepreneurs", as he put it on Friday morning on Spanish radio.

"There are going to be specific measures from the start for entrepreneurs and there is going to be a clear message from the government that we're counting on them, with the help of the government, to steer us out of this crisis by creating employment."

His contender, current interior minister and vice-president Alfredo Perez Rubacalba, has all but predicted he will lose.

"I am worried that the right will take over with absolute power," he said in an interview published on Friday in Spanish newspaper El Paìs.

Judging from the sensation that became the "indignados" - a Spanish anti-austerity movement who inspired anti-establishment movements across the globe - Spanish voters have grown increasingly disillusioned with politics in general.

"If there is any party that is to be disadvantaged by this, it is the PSOE. Many indignados voted socialist before but will now vote blank or for one of the smaller parties. The PSOE, in their eyes, is part of the system," Barreiro noted.

Spain's traditionally bipartisan landscape is indeed likely to become more fragmented. The radical-left Izquierda Unida (United Left) will go from two to eight seats, according to polls. Several newly formed groups are expected to enter the lower house, with the left-wing Basque separatist Amaiur winning as many as three seats.

The Spanish government will be the fifth in the eurozone, after Ireland, Portugal, Greece and Italy, to fall as a direct result of the crisis. Elections were called earlier than scheduled after ratings agencies took to lowering the country's credibility rating.

Worries that Spain might become the fourth country in the eurozone to seek financial assistance were deepened this week when the cost of borrowing money briefly breached seven percent, the level at which Greece, Ireland and Portugal were forced to ask for rescues.

"I don't think we're going in that direction. We shouldn't exaggerate," Javier Zarzalejos of FAES, a think-tank related to the PP, told this website.

"After all, unlike the new governments of Greece or Italy, ours will have a comfortable majority and a broad democratic mandate. The future government of Spain will be the most stable government in Europe."

Mass strikes, protests hit Italy, Spain over EU-imposed austerity

Popular anger over Europe’s strategy of austerity for exiting the eurozone crisis spread to Italy on Tuesday as the country was paralysed by a general strike. Hundreds of thousands of ordinary Italians poured into the streets of over a hundred cities and towns to protest what Brussels, Frankfurt and Berlin demand.

Tusk summits to create new-model EU

Tusk has proposed a series of 13 top-level talks to take forward European reform, but his backing for a multi-speed Europe risks deepening divide.

Focus

Health MEPs want to phase out glyphosate by 2020

A committee resolution said the proposal to renew the glyphosate permit for a decade "fails to ensure a high level of protection of both human and animal health and the environment".

News in Brief

  1. Austrian PM calls Brexit talks speed 'big disappointment'
  2. PM Muscat: journalist murder 'left a mark' on Malta
  3. Belgian PM: No crisis with Spain over Catalan remarks
  4. Ireland PM: Further Brexit concessions needed from UK
  5. Merkel: rule of law in Turkey going 'in wrong direction'
  6. Finnish PM: EU 'frustrated' with slow Brexit talks
  7. Dutch PM: Catalan crisis is not a European issue
  8. May 'urgently' wants to see a deal on citizens' rights

Stakeholders' Highlights

  1. European Jewish CongressEJC Applauds the Bulgarian Government for Adopting the Working Definition of Antisemitism
  2. EU2017EENorth Korea Leaves Europe No Choice, Says Estonian Foreign Minister Sven Mikser
  3. Mission of China to the EUZhang Ming Appointed New Ambassador of the Mission of China to the EU
  4. International Partnership for Human RightsEU Should Seek Concrete Commitments From Azerbaijan at Human Rights Dialogue
  5. European Jewish CongressEJC Calls for New Austrian Government to Exclude Extremist Freedom Party
  6. CES - Silicones EuropeIn Healthcare, Silicones Are the Frontrunner. And That's a Good Thing!
  7. EU2017EEEuropean Space Week 2017 in Tallinn from November 3-9. Register Now!
  8. European Entrepreneurs CEA-PMEMobiliseSME Exchange Programme Open Doors for 400 Companies Across Europe
  9. CECEE-Privacy Regulation – Hands off M2M Communication!
  10. ILGA-EuropeHealth4LGBTI: Reducing Health Inequalities Experienced by LGBTI People
  11. EU2017EEEHealth: A Tool for More Equal Health
  12. Mission of China to the EUChina-EU Tourism a Key Driver for Job Creation and Enhanced Competitiveness