Spain’s political inertia is causing wide disruption

Subject

Spain's political instability.

Significance

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.

Impacts

• 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.