Spain’s electoral predicament is a threat to the country’s economy, according to Moody’s Analytics.
Spain appears to be no further forward after its second election in six months produced a very similar outcome as the first. The acting government in power since December has limited powers.
If no coalition agreement is reached, and talks so far have been fruitless, a third poll may have to be called.
Alongside this key problem are mounting pressure from separatists in Catalonia and uncertainty swirling around the Brexit vote.
The economic research group says all these factors are conspiring to further reduce consumer spending as well as foreign investment, and are threatening the burgeoning economic recovery.
In a new report, the group says that internal and external political issues will cause investment to slow in the short term, “partially eclipsing the benefits of domestic structural reforms.”
The regional government of Catalonia has recently decided to set out steps toward independence. Madrid is firmly opposed to any break-away attempt.
“The UK’s decision has strengthened separatist feeling in an already politically complicated Spain,” the report noted.
It also pointed out that acting Prime Minister Rajoy of the Popular Party has not managed to convince either the Socialist Party or left-leaning Podemos to support him. The three parties differ on the issue of independence for Catalonia and on other policies, which stands in the way of them agreeing to create a left coalition.
“Thus, Spain could remain without a functioning government for longer than expected,” warns Moody’s Analytics.
Comments
How is this any different from the rest of the West? In fact things do appear to be changing with the popularity of Podemos, Corbyn, Sanders et al. Moody's (a powerful part the Anglo-Saxon financial elite) is of course unhappy that Podemos' success at the polls has again denied the usual neoliberal majority government.
One of the more obvious indicators is the attitudes to revisiting the bad old days that both countries experienced during Fascism. Allowing those that suffered then, or their surviving relatives to ask the question why and ... perhaps even getting answers from any bad guys in uniform still living who did the bad things. On behalf of the State or some local heavyweight whose elite relatives today do not want any scrutiny about how they got what they did then. Spain is unquestionably further down the line in at least a few bravehearts periodically muttering about their pain.
Pathetic!