Spain: Period of political uncertainty – Rabobank

By FXStreet FXStreet (Delhi) – Jane Foley, Senior FX Strategist at Rabobank, suggests that a period of political uncertainty has kicked off in Spain following inconclusive elections at the weekend.

Key Quotes

“PM Rajoy’s People’s Party lost one third of its seats and, although it remains the largest party in parliament, the disappointing performance of the centrist Cuidadonos party means that a coalition between these two parties would still fall short of a majority.”

“Spain’s election appears to mark the end of the two party political system that has dominated for 33 years with Rajoy’s PP party (now with 123 seats) and the Socialists (now with 90 seats) having alternated in power during that period. These two rival parties have ruled out a coalition. The upstart Ciudadonas party, the more natural partner for the PP, now has 40 seats while left wing Podenos, a potential partner for the Socialists, won 69 seats at the weekend election. 176 are needed to form an election. If a workable coalition cannot be formed, Spain could go to the polls again next year.”

“This is not the first time that Spanish elections have produced a hung parliament as Spain have been led by a minority government before. However, in …read more

Source:: FX Street