People’s opposition to austerity policies being imposed by European Union on Latin European countries continues to reflect in the electoral arena deepening the political crisis in these countries. Recent elections in Spain fourth largest economy of the Eurozone, held on December 20, 2015 have produced a fractured mandate with pro-austerity parties facing reduction in their vote share as well as in the number of seats in the Parliament. Ruling Popular Party (PP) and the main opposition Socialist Party (PSOE) which have been alternating in power for over decades both lost in terms of votes and seats in the new parliament. The elections threw a verdict where formation of a govt. itself is quite difficult. Neither PP nor PSOE are in a position to cobble together a coalition to form the government.
Spain has been one of the south European countries which have been severely affected by the world financial-economic crisis. Though its sovereign debt was not very high at the time of crisis, flight of foreign capital in the wake of the explosion of that crisis in 2008 led to several balance of payment of crisis and undermining of banks. European Union held out a bail out with severe conditions in terms of austerity measures.… Read More