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February 14, 2019

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Snap election looms after Spanish budget rejected

Spain’s parliament rejected the government’s 2019 draft budget, pushing the country to the brink of a national election.

Sources in the government and the Socialist party of Prime Minister Pedro Sanchez said before the vote he would call a snap election if the draft was rejected, with April 14 or April 28 the most likely dates.

The Socialists hold less than a quarter of the seats in parliament and needed support from smaller regional parties, including the Catalans, to get the budget proposal voted through.

But the Catalan parties, unhappy with the government’s refusal to consider or discuss — amongst other issues ­— an independence referendum for their northeastern region, voted against it, as did the center-right and the conservatives.

“This shows that the right wing in this country is intent on blocking social progress,” Budget Minister Maria Jesus Montero told reporters, in the government’s first reaction to the vote.

In all, 191 lawmakers voted against the budget and 158 in favor, with one abstention.

Conservative People’s Party leader Pablo Casado called the outcome “a de facto confidence vote against Pedro Sanchez.”

Spanish stocks edged lower and Spain’s IBEX was the only major eurozone equity index in negative territory.

The political sources said yesterday it was not clear yet when the election would be announced. But they also said Sanchez wanted a ballot as soon as possible to mobilze left-leaning voters following a rally in Madrid on Sunday by three right-wing parties, including the far-right Vox.

Vox has jumped in opinion polls with a rise in anti-Catalan feelings throughout the nation.




 

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