After Italy, What is Happening in Spain

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Pedro Sanchez, the new Prime Minister of Spain as of June first. Picture from euobserver

Italy came to the lights after the five star movement started gaining power in big cities. This lead to high uncertainty and risk for investors. The Five star movement is a populist party that is described as New Right. At first, the movement had strong anti-European Union stands but has recently tried to change that image. While ambiguity was surrounding the situation in italy, Spain was having problems on a lower radar.

After Italy went through their tensions and came up strong, Spain is now struggling. On June first, Spain’s prime minister Mariano Rajoy was pushed out after a no-confidence vote. This happened because of recent corruption scandals for the Prime minister’s People’s Party (PP). The scandals were centered on the former treasurer who received a 33 year jail sentence last week. Spain’s government has collapsed because of this and uncertainty is as high as it can get. The new set to be Prime minister is Pedro Sanchez. Who is Pedro Sanchez? Sanchez, an economics professor who was unkown to the public emerged in 2014 to win the leadership of the Spanish Socialist Workers. He rallied votes based on his promise to unite the party and put it back in power. He was defeated twice in 2015 and 2016 and had to resign after implications with Rojay. In 2017, he was re-elected to lead the party. His party was in charge of presenting the no-confidence motion against Rajoy. This means that based on the Spanish constitution, they are supposed to govern the country. Sanchez has said that he will stick with Rajoy’s budget and he has shown willingness to work with Catalonia’s pro independence government. Rajoy is defending himself by saying that this was the only way for Sanchez to become PM because he couldn’t have won in elections. Sanchez has said that he would call for general elections after having a few months to work on reforms. The situation is still tense because Sanchez just took office today, so unceratinty could not be any higher.

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