Spain's political instability.
Spain’s succession of fragmented parliaments since 2015 is having adverse consequences on the economy, legislative reforms, the territorial challenge posed by Catalonia and Spain’s role in Europe.
- Pressure within the PSOE could mount on Sanchez if he fails to form a government.
- If Sanchez wins an investiture vote but lacks a coalition agreement, a PSOE minority government with case-by-case support is likely.
- Another snap election is unlikely to substantially change the parliamentary arithmetic.
- Growing divisions within the Catalan independence movement will probably limit its coherence and legitimacy.