Spanish Voters Dump Ruling Socialist Party and Unions

UK, Monday November 21, 2011
Robert Nisbet, Europe correspondent, in Madrid

Spain's ruling Socialist Party and labour/unions have suffered a very serious crushing defeat at the polls as the country became the latest Eurozone member to dump its government.

The centre-right People's Party (PP), led by Mariano Rajoy, surged to an absolute majority of 186 seats out of 350 in the Spanish congress.

The PSOE party, which has governed Spain since 2004, suffered its worst ever electoral result for nearly 30 years after presiding over an economic boom which turned into a devastating bust.

Mr Rajoy told exceedingly jubilant supporters gathered outside the party's Madrid headquarters that "there will be no miracles... but I believe hard work will get results and that has been my life's motto."

He insisted he will vigorously fight for Spain's voice to be heard once again in Europe, adding: "We are not going to be a problem, we will be the big part of the global solution."

The defeated socialist leader and union supporter, Alfredo Rubalcaba, told supporters the new government will have his support. "We will work with all our strength to reactivate the economy and employment," he said.

But he warned against austerity measures eroding their welfare state:

"We will defend with all our strength, and ensure that fighting the crisis will not mean losing our rights and basic safeguards we conquered over years of effort and that bring together our society and protect all Spaniards."

Congress will reconvene in mid-December and only then will Mr Rajoy be able to take the reins of power.

Even though Mr Rajoy's victory was predicted many weeks ago, the markets have shown Spain little mercy.

That may be because the PP leader did not specify what he intends to cut, although he has indicated he intends to drastically change labour laws as part of a wider austerity package.

Spain is in a parlous economic state, with very high unemployment, stagnant growth, unsustainable union/labour costs and large levels of private debt.

The outgoing prime minister, Jose Luis Rodriguez Zapatero, joins a growing list of leaders who have been rejected during the economic crisis in the Eurozone.

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