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News Analysis: Challenges ahead in Spain after PM ousting

Source: Xinhua    2018-06-02 04:38:50

MADRID, June 1 (Xinhua) -- Spain's political scene has been a roller coaster in the last 10 days, first with the late approval of the 2018 General State Budget, and then the court sentence that condemned the ruling People's Party (PP) of Prime Minister Mariano Rajoy, which led to a no-confidence vote.

The Congress of Deputies decided on Friday to end Rajoy's government, which has been in power for six and a half years, and give their confidence to the leader of the Spanish Socialist Workers Party (PSOE), Pedro Sanchez, who won with 180 votes in favor, 169 against and one abstention.

In order to be approved, the motion of no-confidence presented by Sanchez needed to exceed the absolute majority of the lower house (176 seats). This was the fourth motion of no-confidence in the country since 1977, but the first to succeed.

The initiative was launched after the Gurtel trial sentence was handed down on May 23, which led to the prime minister being ousted.

According to the court, the PP benefited from a large-scale corruption network. The trial proved that the party had a slush fund, known as the "B-Box", since at least 1989 -- a "financial and accounting structure parallel to the official" that benefited from the contributions of the corrupt network.

Local analysts believe that the situation reflects the weakness of Spain's politics and economy when facing special situations, because corruption has chased the ruling PP in recent years, while in the economic scenario, public debt, deficit, unemployment or lack of innovation, are still problems to be solved in the country.

The approval of the no-confidence motion also implies the beginning of a new era of political and economic turmoil, because it will be difficult to rule the country without holding early general elections due to the narrow support Sanchez has -- 84 seats.

However, the socialist leader could spend a year and a half in power until the end of the term, since another no confidence motion is unlikely, unless there were a joint vote of the left-wing Podemos party and the right-wing PP to remove Sanchez from power.

In addition, it is increasingly difficult to form a majority government due to the emergence of two new big political parties at the national level.

Spain experienced a political crisis two years ago and has twice held general elections: in December, 2015 and June, 2016, and had an acting government for 10 months.

Economic analysts predict that public and private investments and job creation will fall, pension system reform will be suspended, and the number of international tourist arrivals will slow as a result of the current uncertainty.

Also, the split between the three parties that supported the intervention in Catalonia -- PSOE, PP and Ciudadanos -- to deal with separatism, might result in institutional weakness and loss of authority, although all of them have a negative stance towards separatism.

Sanchez said at the exit of the Congress of Deputies that he was aware of the responsibility he is assuming and the complex political moment. He stated he will take on all the challenges the country has with "will, commitment and determination".

Editor: Chengcheng
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News Analysis: Challenges ahead in Spain after PM ousting

Source: Xinhua 2018-06-02 04:38:50

MADRID, June 1 (Xinhua) -- Spain's political scene has been a roller coaster in the last 10 days, first with the late approval of the 2018 General State Budget, and then the court sentence that condemned the ruling People's Party (PP) of Prime Minister Mariano Rajoy, which led to a no-confidence vote.

The Congress of Deputies decided on Friday to end Rajoy's government, which has been in power for six and a half years, and give their confidence to the leader of the Spanish Socialist Workers Party (PSOE), Pedro Sanchez, who won with 180 votes in favor, 169 against and one abstention.

In order to be approved, the motion of no-confidence presented by Sanchez needed to exceed the absolute majority of the lower house (176 seats). This was the fourth motion of no-confidence in the country since 1977, but the first to succeed.

The initiative was launched after the Gurtel trial sentence was handed down on May 23, which led to the prime minister being ousted.

According to the court, the PP benefited from a large-scale corruption network. The trial proved that the party had a slush fund, known as the "B-Box", since at least 1989 -- a "financial and accounting structure parallel to the official" that benefited from the contributions of the corrupt network.

Local analysts believe that the situation reflects the weakness of Spain's politics and economy when facing special situations, because corruption has chased the ruling PP in recent years, while in the economic scenario, public debt, deficit, unemployment or lack of innovation, are still problems to be solved in the country.

The approval of the no-confidence motion also implies the beginning of a new era of political and economic turmoil, because it will be difficult to rule the country without holding early general elections due to the narrow support Sanchez has -- 84 seats.

However, the socialist leader could spend a year and a half in power until the end of the term, since another no confidence motion is unlikely, unless there were a joint vote of the left-wing Podemos party and the right-wing PP to remove Sanchez from power.

In addition, it is increasingly difficult to form a majority government due to the emergence of two new big political parties at the national level.

Spain experienced a political crisis two years ago and has twice held general elections: in December, 2015 and June, 2016, and had an acting government for 10 months.

Economic analysts predict that public and private investments and job creation will fall, pension system reform will be suspended, and the number of international tourist arrivals will slow as a result of the current uncertainty.

Also, the split between the three parties that supported the intervention in Catalonia -- PSOE, PP and Ciudadanos -- to deal with separatism, might result in institutional weakness and loss of authority, although all of them have a negative stance towards separatism.

Sanchez said at the exit of the Congress of Deputies that he was aware of the responsibility he is assuming and the complex political moment. He stated he will take on all the challenges the country has with "will, commitment and determination".

[Editor: huaxia]
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