Far right Vox could join next government
A banner showing an image depicting Alberto Nuñez Feijoo, leader of the PP Party. Voters in Spain head to the polls on July 23 to cast their votes and elect Spain's next government.
Spain voters are heading to the polls on Sunday in an election that could bring the far right to power for the first time since Francisco Franco's dictatorship.
Polls published ahead of the vote projected a conservative win, with the PP (Partido Popular) set to secure about 34% of support — which would not be sufficient to form a majority government.
Some political analysts expect PP to join forces with the far right party Vox, which could be the third biggest political force in this election and obtain more than 10% of the votes.
"The most likely outcome is a coalition government with PP firmly in the lead and in control of most key ministries, and Vox as the junior partner," Federico Santi, senior analyst at Eurasia Group, said in a note Wednesday.
He added that this scenario "would be moderately market-positive, as reflected in Spanish asset prices over the last few weeks, with a modest outperformance of Spanish equity indices compared to European peers, while the sovereign credit spread vis-à-vis Germany has remained broadly stable."
Source: CNBC
