Spanish prime minister Jose Zapatero has called a general election for November four months ahead of schedule.
Voters will go to the polls on November 20th, Mr Zapatero told a press conference in Madrid this morning.
The election was due to be held in March, but better employment data has persuaded the prime minister to call the election earlier than planned.
The ruling Socialist party has been suffering in local and regional elections because of the economic downturn and the rival Popular party has a seven per cent lead in the polls.
Mr Zapatero will not be standing in the election and his party will be led by former interior minister Alfredo Perez Rubalcaba who will be the Socialist candidate for prime minister.
Mr Zapatero called early elections as austerity measures erode support for his party and the country, which is the fourth biggest eurozone economy, seeks to convince investors it can control its budget deficit.
Spain will make an "extra effort" to meet deficit targets, he said. "The decision to announce the elections calendar today is to project political and economic certainty for the next few months: about what is needed to do, what we're going to do and about the date of elections."
Spain has been under intense pressure in financial markets on the heels of a review for a possible downgrade from credit rating agency Moody's, which cited weak growth and out of control regional spending.
REUTERS