The Spanish prime minister, Josè Luis Rodrìguez Zapatero on Friday called an early election for 20 November as the country struggles to cope with soaring bond rates and high unemployment.
Zapatero said he had decided to bring forward the elections from March to bring greater “political and economic certainty” to a country that many see as a key to the future of the eurozone. “I want a new government to take control of the economy from January 1 next year,” said Zapatero. “It is convenient to hold elections this fall so a new government can take charge of the economy in 2012, fresh from the balloting.”
Zapatero imposed austerity and reforms last year as sovereign debt markets threatened to push his country into a situation similar to Portugal, Greece and Ireland — all of which have needed bailouts. He said key reforms would be completed by September and further deficit-reducing measures would come next month.
Unemployment is running at 21%, according to second quarter figures released on Friday. The figure came despite a booming tourist season, helped by holidaymakers’ nerves over visiting Arab spring countries like Tunisia and Egypt. The elections will come six months after Zapatero’s Socialist party was roundly defeated in May’s regional and municipal elections.
A poll by the state-owned Centre for Sociological Investigation this week gave the opposition rightwing People’s party (PP) of Mariano Rajoy, which won the May vote, a seven-point lead over the socialists.
That would be enough for the reformist PP to govern, though it would not win an absolute majority and may have to rely on parliamentary support from conservative nationalist parties in Catalonia or the Basque country. Zapatero, who has served two terms since 2004, is being replaced as the party’s candidate for prime minister by Alfredo Pèrez Rubalcaba, a former deputy prime minister who would like to take the party further to the left. He would also embrace some demands of the so-called “indignant” protest movement that has taken to Spain’s streets in recent months, including electoral reform.
Rajoy has promised he would be a centrist, moderate prime minister.
The decision to bring forward elections comes amid increased pressure on Spain’s sovereign debt.
Ratings agency Moody’s on Friday put Spain’s Aa2 credit rating on review for possible downgrade. Moody’s said funding pressures on Spain were likely to increase after last week’s bailout package for Greece asked the private sector to take losses. — guardian.co.uk