Spain has a new government - for how long..

[johnfm]

Looks like Spain has a conservative government.

Even the Spanish electorate are sick of the overspending left.

BUT it won't be long until Brussels installs a technocratic leader in its place I expect.

[don4l]

I suspect that the bond markets will respond positively to the election results. This will mean stability for the new government for a couple of years.


In fact, this result could take the pressure off the Euro for 6-9 months.


Don
--

[Mikeyboy]

The socialists had in fact imposed a lot of structural reforms and austerity measures. They were not overspending as much as say Greece or even Labour here, well in comparison to the "conservatives" over there at least.

The reason the Spanish voted them out of power was that they really think there is a quick solution to the whole thing, that it was the governments fault that the property markets boomed then busted and that consumer credit got out of control based upon low interest rates.
They in other words like to blame anyone but themselves and being very insular do not care or understand what is happening outside of Spain.

They are going to get a shock when the PP impose more cuts, more people go out of work and their lifestyle returns to 1992 levels, at best.

[Trommel]

don4l said:

I suspect that the bond markets will respond positively to the election results. This will mean stability for the new government for a couple of years.


In fact, this result could take the pressure off the Euro for 6-9 months.

Spanish bond yields are rising again today.