Socialist Leader Sanchez Set To Become New Spanish PM As Rajoy Defeat Inevitable

Update: Spanish Prime Minister Rajoy refuses to resign ahead of tomorrow's 'done deal' vote of no confidence in his administration (given that the opposition apparently has the votes) and Maria Cospedal has confirmed that centre-left Socialist party leader Pedro Sanchez is set to become the new Spanish prime minister.

“Are you ready to resign? Resign today and leave by your own will,” Sanchez told Rajoy. “You are part of the past, of a chapter the country is about to close.”

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Mariano Rajoy became prime minister of Spain on December 20, 2011 and barring some miracle, his political career will end on June 1, 2018, because moments ago it appears that the required number of votes to ouster the premier in tomorrow's vote of no-confidence was reached.

As we reported earlier, Socialist leader Pedro Sanchez who is spearheading the vote against the unpopular premier, already had the backing of the anti-establishment group Podemos, and Catalan separatists Esquerra Republicana and PdeCat. He only needed the support of Basque Nationalists to clinch it.

Moments ago the Basques officially sided with Sanchez, when the Basque Nationalists informed both Rajoy’s People’s Party and the Socialists that they’ve decided to vote against the prime minister, according to state broadcaster Television Espanola. With the Catalans of PdeCat also expected to support Sanchez, that would be enough to defeat Rajoy, as there are now 177 votes against Rajoy with 176 needed.

Being the decisive vote against Rajoy must be a welcome revenge for the various Basque and Catalan separatist groups following the unprecedented crackdown that Rajoy unleashed against the various parties last fall when in the aftermath of the Catalan referendum, Spain cracked down on all separatists in the region.

And while markets had been largely prepared for the possibility of Rajoy's ouster, Bloomberg's Paul Dobson points out some potential complications, noting the possibility for the socialists to try to govern without a new election, or that they could find a way to form a government after a new election (with Catalan separatists and Basque nationalists). According to Dobson that would be bad for bonds (and stocks) because:

  • The socialists governing with a minority and the current parliamentary line-up would be very unstable and struggle to get anything done, adding to uncertainty.
  • They may also take a conciliatory approach to the Catalans, raising the prospect of releasing separatists from jail and putting the issue of independence in Catalonia back on the agenda -- that's the biggest risk scenario, as our local expert Ben Sills puts it.
  • The Socialists also want to tax the banks more heavily, another market negative.

In other words, while Italy remains the top risk for euro-area markets, "and the longer-term view with Ciudadanos gaining traction may still be more favorable, it may pay to be alert to the Spanish risks."

Comments

Leakanthrophy MasterPo Thu, 05/31/2018 - 10:23 Permalink

Don't get your hopes too high.

All others except Rajoy's PP are socialists, communists or worse (jew controlled opposition: Ciudadanos)

And there's nothing nationalist about the Basque and Catalans, they are just far left trying to grab some land to make their utopia.

In reply to by MasterPo

Uchtdorf FORCE Thu, 05/31/2018 - 10:37 Permalink

We'll believe that when we see them doing the perp walk and the orange jumpsuit-clad politicians. 

Fond memory: Good ol' WilliamBanzai7 treating us to images of Hillary in orange. Ah, such were the days when a lot of people still foolishly trusted that Trump would seek justice. Turns out he thinks the Clinton's are "good people" who have had a "tough time."

In reply to by FORCE

TGF Texas Uchtdorf Thu, 05/31/2018 - 11:54 Permalink

Priorities, dear Watson.  

He's had a Deep State sodomizing, after the previous admin illegally spied on his campaign, in an effort to remove him from office should he get elected. Most would call that sedition and/or treason.

He has to fight off getting impeached first, before he can let loose the hounds on the treason perp's, in that alone, I expect Hillary will go down. If not then, then shortly afterwards.  She's a small fish at this point, if you can actually believe that! 

In reply to by Uchtdorf

brain_glitch FORCE Thu, 05/31/2018 - 13:05 Permalink

FYI, none of the four main parties in Spain is anti EU. Another EU puppet will take the place of this EU puppet.

"The things that matter in this country have been reduced in choice, there are two political parties, there are a handful insurance companies, there are six or seven information centers.. but if you want a bagel there are 23 flavors. Because you have the illusion of choice!"

George Carlin

In reply to by FORCE

youngman Thu, 05/31/2018 - 10:20 Permalink

Funny how the two biggest borrowers in the EU are in shambles right now politically....and markets don't seem to care....trillions in bad debts that cant be paid...but who cares

Righttoarmbears withglee Thu, 05/31/2018 - 11:08 Permalink

I lived in Spain and its never really been one country, they still remember what area was Republican or royalist, and you will see the Catalan, Valencian, Andalusian Flag, every regions but the Spanish flag only seems to fly on Government buildings!! most road signs are in Spanish and the regional dialect, it speaks a lot of the mind set. Globalism leads to tribalism!

 

All the different regions are very proud of their individual culture so if they allowed that ball to start rolling it would probably break Spain up completely. not sure anyone in power is that brave, would you destroy the company you work for? 

In reply to by withglee

brain_glitch Righttoarmbears Thu, 05/31/2018 - 13:29 Permalink

Good points.

The individual cultures' ball is rolling already.

When Franco died and the 17 Autonomic Communities were established there was a saying: "now we have 17 Francos".

The Autonomic Communities control regional education and media, among other things. Just like in Catalonia they are indoctrinating new generations away from the idea of a united Spain. Not that it was that united to begin with, as you have seen.

I left my region 20 years ago and when I came back the change was very clear. They want to make the local dialect mandatory if you are a regional public servant. They want to make it official but it was never even a language nor widely used locally.

It's a racket, a power struggle using identity politics to rustle people. Down the line it will be more drama and conflict to keep us entertained and worried.

We are just cattle.

In reply to by Righttoarmbears

Righttoarmbears brain_glitch Thu, 05/31/2018 - 14:16 Permalink

Lived in Callosa d'en Sarrià and Estapona the bit i found most confusing was the Policia Local and the Policia national and then you had the Gardia Civil all were corrupt but in different ways. first travelled round Spain in 1983, it was a very Friendly and open country but poor, last lived there 12 years ago, you are right it has changed and not for the best, but the money that the EU pumped in brought more corruption, with unfinished roads and airports. its a shame as the people are generally OK.

In reply to by brain_glitch