Spain will head back to election on June 26th, in a hope to break the current impasse, as party leaders made it clear to the king that no deal could be reached even after four months of political negotiation to break the deadlock.
Scary part is that uncertainties will continue for at least another two months till June and worse part is, it may continue, even after that.
In last year’s election, two major political parties, Popular Party and Socialist after years of dominance over Spanish Politics, suffered big losses at the hands of newly established parties, anti-austerity party Podemos and centrist Ciudadanos. This has left the parliament well-divided. Socialist leader Pedro Sánchez, was able to struck a deal with Ciudadanos but failed to win the backing of Podemos leader, Pablo Iglesias.
Previous president Mariano Rajoy’s Popular party have largely stayed out of the coalition talks and have been waiting to come out as larger gainer in next election on June. Podemos is also expected to gain grounds, just like Alexis Tsiparas gained in Greece.
In last one year, Spain’s benchmark stock index has suffered 19% loss, currently trading at 9290.
The material has been provided by InstaForex Company – www.instaforex.com