Election result ‘bad news’ for Spain

LAST UPDATED: 11 Apr, 2012 @ 20:29
Election result ‘bad news’ for Spain

By Eloise Horsfield

AN unexpected election result that leaves the Socialists in power for four more years in Andalucia could be a major stumbling block for Spain’s economic recovery.

America’s biggest bank JP Morgan believes that last Sunday’s result is ‘bad news for Spain’ and will do nothing to clear up the rife corruption and squandering of money.

“Andalucia continues to be the main brake slowing the Spanish economy down,” insisted a report, adding that there will now not be a necessary ‘clean-up’.

Japanese lender Nomura agreed insisting it was a ‘serious setback’ to reducing Spain’s economic deficit.

Citigroup added that the ability of Spain to control public spending in the regions – in particular Andalucia and Cataluna – was a major problem.

Andalucia is Spain’s poorest region, with 31 per cent unemployed – 8.4 per cent more than the country’s average – despite having some of the highest public spending.

While the PP won the election for the first time in its history, it didn’t take overall control of the Junta, as the PSOE united with the left-wing IU party.

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