Spain has endured difficult economic conditions following the bursting of a property and construction bubble during the Global Financial Crisis. The nation avoided the need for a full sovereign bailout from the EU and IMF, but did need to accept financial help to keep its banks afloat. The crisis caused Spain to embark on a package of reforms and austerity designed to get the nation back on track which were deeply unpopular and saw unemployment spike at a shade under 27%. The unemployment level has eased from this peak (Q1 2013), but it still stands at 21.2%. This is well above the long-term average of 16.4% (1976-2015).
In common with all democratic nations, no mainstream political party has been able to produce a panacea for the economic difficulties; this has produced voter disenchantment and allowed new parties to emerge.
Following Sunday’s election, the ruling Popular Party has lost its majority, but still emerged as the largest force with 28.7% of the vote. The Socialist Party which has alternated with the Popular Party came second with 22%, but an anti-austerity party (Podemos) polled 20.7% and Ciudadanos, a centrist party, won 14% of the vote.
The Spanish parliament consists of 350 seats of which 123 are now held by the Popular Party; 90 seats are held by the Socialists; Podemos has 69 seats; and Ciudadanos claimed 40 seats (leaving 28 seats held by independents and smaller parties).
With no one party able to form a majority government, the parties will discuss formation of some coalition administration which may require protracted discussion. The Podemos group was quick to claim that the result will mean an end to the two party system which has ruled Spain since the end of Franco’s dictatorship.