SPANISH PRIME minister José Luis Rodríguez Zapatero yesterday called an early election for November 20th as the country struggles to cope with soaring bond rates and high unemployment.
Mr Zapatero said he had decided to bring forward the elections from March to bring greater “political and economic certainty” to a country that many see as a key to the future of the euro zone.
“I want a new government to take control of the economy from January 1st next year,” he said.
“It is convenient to hold elections this fall so a new government can take charge of the economy in 2012, fresh from the balloting.”
Mr Zapatero imposed austerity measures and reforms last year as sovereign debt markets threatened to push his country into a situation similar to Portugal, Greece and Ireland – all of which have needed bailouts. He said key reforms would be completed by September and further deficit-reducing measures would come next month.
Unemployment is running at 21 per cent, according to second-quarter figures released yesterday.
The figure came despite a booming tourist season.
The elections will come six months after Mr Zapatero’s Socialist Party was roundly defeated in May’s regional and municipal elections. A poll by the state-owned Centre for Sociological Investigation this week gave the opposition right-wing People’s Party of Mariano Rajoy, which won the May vote, a seven-point lead over the socialists.
That would be enough for the reformist People’s Party to govern, though it would not win an absolute majority and may have to rely on parliamentary support from conservative nationalist parties in Catalonia or the Basque country.
Mr Zapatero is being replaced as the party’s candidate for prime minister by Alfredo Pérez Rubalcaba, a former deputy prime minister who would like to take the party further to the left.
He would also embrace some demands of the so-called “indignant” protest movement that has taken to Spain’s streets in recent months, including electoral reform.
The decision to bring forward elections comes amid increased pressure on Spain's sovereign debt. Ratings agency Moody's yesterday put Spain's Aa2 credit rating on review for possible downgrade. Moody's said funding pressures on Spain were likely to increase after last week's bailout package for Greece asked the private sector to take losses. – ( Guardianservice)