FOCUS ON FINANCE
THE EURO ZONE
FIRST THINGS FIRST
May 26th to June 1st 2017 ed., P.20
Though Sánchez won the leadership contest with 50% of the vote last Sunday, 40%
of Socialists voted for Susana Díaz, who is favoured by the more pragmatic, rank-
It was mainly her supporters who stood back to allow Rajoy back in as prime minister last autumn, thereby opening up a chasm within the Socialist party.
On one side of this deep gorge are the centrist pragmatists, whilst facing
them across a so far-
This camp is closer to radical Podemos – whose loathing for the PP boss
sometimes seems more visceral than political -
Only if Sánchez can somehow unite these two sides of his own party will Rajoy face a robust adversary in congress; until he does, passing legislation and approving budgets will be no more difficult for Rajoy’s government than it already is.
edro Sánchez is back. After eight months as a political outcast, the former Socialist
leader once again took control of his party on Sunday, defeating establishment favourite
Susana Diaz -
Some commentators are expressing concerns that the reinstated PSOE leader will prove an obstacle to the passing of legislation, in particular the annual budget. But while it’s undoubtedly true that Mariano Rajoy’s job is about to become harder, equally true is the fact that Sánchez has plenty to sort out within his own party before he can present a credible opposition to the conservatives or effectively challenge their economic policies.
In any case, those concerned that Spain’s macroeconomic recovery may be derailed by further governmental paralysis can look to last year to assuage their fears.
In 2016, Spain trundled along for 10 months without a proper administration,
yet still posted GDP expansion of 3.2% -
The shambles that was Spanish politics last year tells us that, on a
That is not to excuse the impasse of last year -
Even if that weren’t true, though, a party in as much internal disarray as the PSOE doesn’t present much of a threat to the PP.
M a r k N a y l e r