Mariano Rajoy has emerged as the biggest beneficiary of British referendum in Spain’s general election on Sunday. An initial poll has suggested that his Popular Party will be the biggest party as per the number of seats acquired and biggest beneficiary will be the new-comer anti-establishment Podemos.
It could have been Podemos’s day, should the British voters have voted in favor of staying. Instead, their preference for Brexit triggered a last minute run for safety among Spanish voters, which clearly have benefited the Popular Party. Popular Party has secured 33 percent of the votes or 137 seats in the parliament. Socialists have secured 85 seats and Podemos has secured 71 seats.
This is the second election in Spain in last six months after the first one failed to break the political gridlock. This time too, the result is pointing to another gridlock. Both the Socialist and Podemos have said that they won’t support Rajoy. In such a case, Spain is facing another political gridlock. Rajoy unlikely to gather enough support for a majority in Spain’s 350 member parliament.
Spain's benchmark stock index IBEX35 is currently trading at 7680, down almost 20 percent YTD.
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