PP win


The right wing People’s Party (PP) have won an absolute majority in the general election which took place yesterday.

The PP shot up from 154 seats and 39.94% of the vote in 2008 to 186 seats and 44.5% of the vote yesterday. The winning line for an absolute majority in the 350 seat Chamber of Deputies is 176 seats.

The governing Spanish Socialist Workers’ Party (PSOE) were reduced to 111 seats and 28.73% of the vote yesterday from 169 seats and 43.87% of the vote in 2008.

The centre to centre right Convergence and Union (CiU) party increased their tally from 10 to 16 seats and were the third largest party. The other party to do well were the United Left (IU) who went up from two seats to eleven.

The brand new left wing Basque nationalist party, Amaiur, enter parliament for the first time, taking seven seats.

Generally speaking the minor parties did well, increasing their overall tally from 26 to 54 seats.

Turnout was 71.69%, down about two percent from 2008.

The new government will now have to wait until 13th December to take up their seats, with PP party leader, Mariano Rajoy, possibly not being sworn in until 20th December. It is difficult to see how the markets will tolerate such a long wait for the new government and the PP are likely to be forced into making a series of announcements prior to the new parliament being formed.

Critical amongst those announcements will be the list of the economic team; if Rajoy gets this right and the markets like what they hear then it may buy him some time. However, borrowing by the Spanish government was forced up close to the 7% mark last week and Rajoy has asked the markets to give him time to deliver the necessary austerity packages.

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