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28 May 2018
Spain: Political uncertainty a smaller worry – Nordea Markets
Political uncertainty has increased in Spain after the Ciudadanos party joined the main opposition PSOE and Podemos in heavily criticising Prime Minister Rajoy due to bribery convictions of former members of Rajoy’s party, points out Jan von Gerich, Research Analyst at Nordea Markets.
Key Quotes
“Rajoy’s government is reliant on the the support of Ciudadanos.”
“While early elections also in Spain certainly cannot be ruled out, the situation is materially different from Italy. Ciudadanos is a reform-minded and pro-European party, and it is currently leading the polls. Even if early Spanish elections could lead to difficulties in forming a government, reconsidering the Spanish stance towards the euro is not at play, which should also limit market concerns.”