1st June, 2018
Spanish socialist Pedro Sanchez was catapulted to power on Friday, taking over as prime minister from veteran conservative Mariano Rajoy, who lost a no-confidence vote in the wake of a corruption scandal.
Lawmakers stood and cheered in parliament as the untested 46-year-old – a pro-European lawmaker who has never been in government – became the country’s seventh head of state since its return to democracy in the late 1970s.
Rajoy’s departure after six years in office may lead to a spell of political uncertainty in the euro zone’s fourth-largest economy, just as the third-largest – Italy – pulls back from early elections.
“I am aware of the responsibility I am assuming, of the complex political moment our country is going through, and I will rise to all the challenges with humility and dedication,” Sanchez told reporters.
Sanchez, who became prime minister with only 84 seats for his Socialists in the 350-member assembly thanks to support from the hard-left Podemos and smaller nationalist parties, said he intends to steer the country through to mid-2020 when the parliamentary term ends.
But his majority – the smallest for a Spanish government since the return to democracy following Francisco Franco’s death in 1975, makes it unclear how long his administration can last.
His strong pro-European credentials, and the fact that Rajoy also ran a minority government, suggest fallout from any political ructions is likely to be limited.
Spain’s stock market rose after the parliamentary vote, to trade nearly 2 percent higher on Thursday’s close, while the country’s borrowing costs fell, soothed by Sanchez’s commitment to respecting a fiscally conservative budget passed by Rajoy.
“Sanchez has reiterated a commitment with European orthodoxy and budget control in Spain,” UBS analysts said. “We do not anticipate a substantial impact on the pace of growth.”
Anti-establishment parties in Rome revived coalition plans on Thursday, ending three months of turmoil by announcing a government that, by contrast, says it will increase spending and challenge European Union fiscal rules.
In Berlin, a government spokesman said Germany hoped for a stable government in Madrid.
-Reuters