Spanish regional election review

Spanish general election will be held this year around 20^th December. This year the challenge is not only for Spain but Euro area as whole. A new party Podemos which has similar radical ideas that of Syriza party in Greece is leading in many of the polls.

Spain's Andalucía held its regional election on Sunday that gives partial picture what the underlying current.

• Andalucía is usual stronghold of Spain's socialist party that was able to maintain its strength. Socialists won 36% of the vote beyond the expectation of analysts. However it is eight seats short of absolute majority.
  
  
• Current ruling centre-right popular party came to second place winning about 27% of the votes, decline from a previous 41%.
  
  
• Podemos, which was established just a year ago won 15% of the votes and securing seats for the first time.

• United left and Greens alliance secured 7% of the votes.

Analogy -

• The results raises concern over the current government's ability to secure a win in the coming general election and raises concerns that no party might reach an absolute majority to form a credible government.
  
  
• These uncertainties would weigh on Spanish markets and bond yields as the election date will get closer. IBEX is trading at 11428, up 0.1% today. Euro is up 0.5% at 1.0876.
  
  
• Podemos's performance is quite credible as it was a tough battle in an usual stronghold. However it was successful in alluring voters from the current ruling party. It is the dark horse in this year's election and if it wins austerity policies are going to have tough times.