Rabobank analysts explain that for the Spanish economy, the centre-left PSOE has won Sunday’s elections as radical-right enters parliament.
Key Quotes
“The radical right will not have a direct say in the next government, but likely to indirectly influence stance of all right-wing opposition parties.”
“A minority government is in the cards, but not a given and negotiations will take time.”
“The initial reaction in financial markets to the election results has been calm.”
“The economy should not suffer much in the short run, but medium-term challenges are unlikely to be forcefully dealt with and fiscal consolidation is likely to proceed too slow.”
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