Rajoy elected PM


Mariano Rajoy was finally elected as Prime Minister by the 350 seat Congress of Deputies yesterday. He received 187 votes in favour, 149 against and 14 abstentions.

He has already pledged to cut the public deficit by €16.5 billion, although he has said that pensions will not be touched.

The hard-line stance and the clear majority for his party has encouraged investors to be more optimistic about Spain’s future. A three month debt auction held yesterday saw borrowing costs drop from 5.11% last month to just 1.74% yesterday. The Finance Ministry took advantage of the low rate and raised €5.64 billion, more than €2 billion more than originally intended.

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