Brussels, 21/11/2011 (Agence Europe) - On Sunday 20 November, the Right obtained an absolute and historic majority in the Spanish general elections. The People's Party (PP), headed by Mariano Rajoy, 56, will form the next government and obtained 180 seats as opposed to 111 for the Socialist Party (PSOE). This is the latter's worst result since Spain returned to democracy. The Spanish Socialists have been in power since 2004 and therefore become new victims of the crisis that has also brought down the Greek and Italian governments.
Mariano Rajoy promised shared efforts to declare war on the crisis but recognised that there was not going to be any miracle cure faced with a very difficult economic situation. The new prime minister will have to act very quickly: Spain is currently in the eye of the market storm and its borrowing rates reached a record 7% last week. To reassure the markets, Mariano Rajoy promised to put the country's public finances on a firm footing whatever it costs. He has made a commitment to bring down the deficit to 4.4% of GDP in 2012 and 3% in 2013, although the 6% objective this year already appears to compromise the slippage in the public coffers in the 17 semi-autonomous regions of Spain. According to the European Commission, the deficit will reach 6.6% of GDP in 2011. Next year, Spain will have to increase GDP by two points, €21 billion in additional savings. Austerity is therefore expected to get tougher for the Spanish people. The PP has also announced that it will be tackling the banking sector.
Mariano Rajoy is a tenacious man, lacking charisma and is expected to be made head of government on 20 December. The president of the EPP group at the European Parliament, Joseph Daul, declared, “this is the victory that Spain needs to become a country at the vanguard of the European Union once again. I am convinced that the leadership of Mariano Rajoy will be strong and will lead the Spanish society to the path of economic growth, making the necessary and urgent measures to recover the confidence of the financial markets”. The president of the European Parliament, Jerzy Buzek, said that, “Mr Rajoy is an experienced and competent politician. I am confident that he will put all his efforts to redress the current economic situation and put Spain back on the path of economic growth”. (LC/transl.fl)