Spain: Economy guided by the politics - Danske Bank

Danske Bank analysts point out that in Spain, the first parliamentary vote that would see Pedro Sánchez's PSOE party take government, turned out negatively as only 124 members voted in favour of the proposed government (PSOE has 123 members in parliament) and 170 voted against.

Key Quotes

“There were 52 abstentions, 42 of them from Podemos with the party abstaining altogether. PSOE and Podemos have been negotiating a potential coalition since the election in April but are yet to reach an agreement.”

“Lately, Podemos has accused Sánchez of offering only decorative roles in a potential government. A new vote is set for Thursday where only a simple majority of those MPs who vote is needed. In case of another rejection, Sánchez (or another party leader) has a two-month window to form a government or face new elections.”