The result of the regional elections on 21 October sent a mixed signal to Prime Minister Mariano Rajoy and his ruling People's Party (PP). On the one hand, the PP widened its absolute majority in Galicia, in what the government labelled as an endorsement of its austerity policies at a national level. On the other hand, the outcome of the vote in the Basque Country showed strong support for nationalist parties. The results come ahead of the 25 November elections in Catalonia - the country's largest regional economy - where the secessionist movement has gained momentum in recent months, with Catalan President Artur Mas pledging to hold a referendum on independence if his party wins the November vote. Some analysts consider that the government's victory in Galicia paves the way for Spain to finally request a full bailout, as the Rajoy administration has been very reluctant to ask for aid prior to the elections for fears of an electoral backlash. That said, yields on Spanish debt, while high, have moderated significantly from the record highs reached at the end of July, therefore granting the government some additional time before making a formal request for help.
Regional elections send mixed signals
October 24, 2012
Looking for forecasts related to Other in Spain? Download a sample report now.
Spain Economic News
October 7, 2016
In August, industrial production expanded 4.0% from the same month last year in working-day adjusted terms.
October 5, 2016
The Markit Purchasing Managers’ Index (PMI) Composite Output Index came in at 54.1 in September, which was slightly below August’s 54.8 reading.
September 30, 2016
Spain’s current account balance incurred a surplus of EUR 3.0 billion in July, which was above the EUR 2.7 billion surplus recorded in the same month of last year and marked the highest reading since December 2014.
September 29, 2016
In August, retail sales rose 4.9% over the same month last year as the discount season drew to an end.
September 29, 2016
In July, the Spanish Board of Architects (Colegio de Arquitectos Técnicos) granted 6,267 new construction permits, according to data published by the Ministry of Public Works (Ministerio de Fomento).