Business, Finance & Economics

Spain likely to oust Socialist party in Sunday's election


Visitors look at screens in Madrid's Stock Exchange on Aug. 4, 2011 in Madrid, Spain.


Javier Soriano

Spaniards are expected to throw the Socialist party out of government in Sunday's election, reported Reuters. Spaniards blame the current government for the growing debt crisis.

According to Bloomberg BusinessWeek, polls are suggesting that Rajoy and the conservative People's Party may win up to 198 of the 350 seats in Spain's parliament, in what could be the largest majority Spain has seen since 1982.

The Socialist Party has been in power for the past eight years, presiding over the country's terrible economic downtown and record unemployment rate, reported CBCNews. The recent events are likely to be too much for Socialist party candidate Alfredo Perez Rubalcaba to overcome.

In a pre-election interview, AFP reported that Rajoy asked for the markets to give his government "more than a half hour" to address the soaring borrowing costs and risk premiums facing the country.

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According to the Los Angeles Times, the People's Party would inherit a country with an unemployment rate of more than 20 percent, a shaky banking system and growing doubts by international investors that Spain will be able to pay off its debt, as the European Union considers it too big to be bailed out.

The Times reported that Rajoy allegedly said the following about Spain's commitment to the Euro:

I believe in Europe. I believe in the euro project. I want to fulfill the tasks that we all need to do as members of the euro.

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