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Spanish Election Marks Another Rejection of Austerity Spanish Election Marks Another Rejection of Austerity
(35 minutes later)
MADRID — European leaders and economists are still locked in a heated debate about whether austerity policies have done more to help or hurt people in the region, particularly in Europe’s heavily indebted south.MADRID — European leaders and economists are still locked in a heated debate about whether austerity policies have done more to help or hurt people in the region, particularly in Europe’s heavily indebted south.
But as the election Sunday in Spain showed, voters have made up their minds. A backlash against austerity has now clearly cracked the club of parties that had a lock on politics, and ushered in a new generation of challengers. But as the election Sunday in Spain showed, economic crisis can also push voters to reconsider their political institutions. A backlash against austerity has cracked the club of parties that had a lock on politics, and ushered in a new generation of challengers.
The outcome in Spain was messy and it could well take weeks of haggling among the parties to sort out who will be able to govern. But in a close approximation of the October election result in Portugal, a majority of Spaniards voted against what had been an austerity-minded government. Those outcomes followed the repudiation of an austerity government in Greece early this year.The outcome in Spain was messy and it could well take weeks of haggling among the parties to sort out who will be able to govern. But in a close approximation of the October election result in Portugal, a majority of Spaniards voted against what had been an austerity-minded government. Those outcomes followed the repudiation of an austerity government in Greece early this year.
“The sense of political crisis in Spain and some other European countries is clearly the fruit of the economic crisis,” said Jaime Pastor, a professor of politics at the Universidad Nacional de Educación a Distancia in Madrid.“The sense of political crisis in Spain and some other European countries is clearly the fruit of the economic crisis,” said Jaime Pastor, a professor of politics at the Universidad Nacional de Educación a Distancia in Madrid.
The financial crisis, he argued, first put into question the viability of the region’s economic model and welfare state, but eventually turned into “a debate over whether the cost of the crisis was shared fairly, to which many voters answered negatively and are therefore demanding the removal of the crony capitalism of the big parties.”The financial crisis, he argued, first put into question the viability of the region’s economic model and welfare state, but eventually turned into “a debate over whether the cost of the crisis was shared fairly, to which many voters answered negatively and are therefore demanding the removal of the crony capitalism of the big parties.”
Still, Prime Minister Mariano Rajoy of Spain is hoping to stay in office, at the helm of a minority or coalition administration, after his conservative Popular Party won the most votes on Sunday but lost its parliamentary majority.Still, Prime Minister Mariano Rajoy of Spain is hoping to stay in office, at the helm of a minority or coalition administration, after his conservative Popular Party won the most votes on Sunday but lost its parliamentary majority.
Even if Mr. Rajoy succeeds, some analysts say the shake-up of Spanish politics is irreversible after two emerging parties, Podemos and Citizens, made enough gains on Sunday to lower the combined share of the two traditional parties, the Popular and the Socialist parties, to just over 50 percent of the vote.Even if Mr. Rajoy succeeds, some analysts say the shake-up of Spanish politics is irreversible after two emerging parties, Podemos and Citizens, made enough gains on Sunday to lower the combined share of the two traditional parties, the Popular and the Socialist parties, to just over 50 percent of the vote.
“Crises take place with a certain time lag, so it’s clear the Spanish system of political parties has entered a transition, but not clear how long that transition will take,” said Antonio Barroso, a Spanish political analyst at Teneo Intelligence, a think tank in London.“Crises take place with a certain time lag, so it’s clear the Spanish system of political parties has entered a transition, but not clear how long that transition will take,” said Antonio Barroso, a Spanish political analyst at Teneo Intelligence, a think tank in London.
Indeed, the changes to political establishments in southern Europe have come with a high degree of uncertainty and turmoil. In Spain, the result shattered a political landscape where mainstream parties had alternated control of the government for decades.Indeed, the changes to political establishments in southern Europe have come with a high degree of uncertainty and turmoil. In Spain, the result shattered a political landscape where mainstream parties had alternated control of the government for decades.
The insurgent Podemos, which did not exist two years ago, took 20.7 percent of the votes, just behind the Socialist Party, which had its worst showing ever.The insurgent Podemos, which did not exist two years ago, took 20.7 percent of the votes, just behind the Socialist Party, which had its worst showing ever.
The returns also underlined a generational shift in regional politics. Mr. Rajoy, 60, tried to contrast his three decades in politics with the untested leadership of his three far younger rivals — all of whom are in their 30s or 40s. It did him little good.The returns also underlined a generational shift in regional politics. Mr. Rajoy, 60, tried to contrast his three decades in politics with the untested leadership of his three far younger rivals — all of whom are in their 30s or 40s. It did him little good.
Elsewhere, Greece is led by Prime Minister Alexis Tsipras, 41, who became a role model for the rest of the European anti-establishment left.Elsewhere, Greece is led by Prime Minister Alexis Tsipras, 41, who became a role model for the rest of the European anti-establishment left.
On Monday, Mr. Tsipras congratulated Podemos and its leader, Pablo Iglesias, 37, on becoming the third-largest party in Spain, as well as the country’s main anti-establishment force. “Austerity has now been politically defeated in Spain, as well,” Mr. Tsipras said.On Monday, Mr. Tsipras congratulated Podemos and its leader, Pablo Iglesias, 37, on becoming the third-largest party in Spain, as well as the country’s main anti-establishment force. “Austerity has now been politically defeated in Spain, as well,” Mr. Tsipras said.
In southern Europe, perhaps Italy alone has been spared the instability of a breakdown of its main party system. But it seems that is largely because Prime Minister Matteo Renzi, 40, safeguarded his center-left Democratic Party from the threat of political insurgents by trying to rejuvenate the party and the political establishment from within.In southern Europe, perhaps Italy alone has been spared the instability of a breakdown of its main party system. But it seems that is largely because Prime Minister Matteo Renzi, 40, safeguarded his center-left Democratic Party from the threat of political insurgents by trying to rejuvenate the party and the political establishment from within.
But even there, it is not clear that the storm has passed, and analysts note that Mr. Renzi’s popularity has declined since he took office last year, as the public pressure for changes has not relented.But even there, it is not clear that the storm has passed, and analysts note that Mr. Renzi’s popularity has declined since he took office last year, as the public pressure for changes has not relented.
“Renzi was able to convince a lot of traditional voters that he could change things from the inside and at least in part stop the emergence of protest parties, but there’s been a growing sense of disappointment ever since he’s been in power,” said Federico Santi, an Italian political risk analyst at Eurasia Group, a consultancy.“Renzi was able to convince a lot of traditional voters that he could change things from the inside and at least in part stop the emergence of protest parties, but there’s been a growing sense of disappointment ever since he’s been in power,” said Federico Santi, an Italian political risk analyst at Eurasia Group, a consultancy.
In Portugal, the Socialist leader António Costa, 54, survived a poor election result and then managed last month to snatch victory from the jaws of defeat after striking an improbable alliance with far-left, anti-establishment parties in order to oust the center-right coalition that had won most votes in the national election in October.In Portugal, the Socialist leader António Costa, 54, survived a poor election result and then managed last month to snatch victory from the jaws of defeat after striking an improbable alliance with far-left, anti-establishment parties in order to oust the center-right coalition that had won most votes in the national election in October.
But even if more voters have rejected austerity, where this will take the region is uncertain. As the result in Greece showed, even anti-austerity parties have to answer to financial markets and balance national budgets, and the numbers are still deeply stacked against the policies of the old left and their heavy spending on welfare states.But even if more voters have rejected austerity, where this will take the region is uncertain. As the result in Greece showed, even anti-austerity parties have to answer to financial markets and balance national budgets, and the numbers are still deeply stacked against the policies of the old left and their heavy spending on welfare states.
In Portugal, Mr. Costa leads a fragile administration after striking a coalition deal aimed at reversing some tax increases and spending cuts that Portugal made in return for a 2011 international bailout. Since taking office, however, Mr. Costa also has had to reaffirm his commitment to the fiscal targets set for Portugal by the European Union.In Portugal, Mr. Costa leads a fragile administration after striking a coalition deal aimed at reversing some tax increases and spending cuts that Portugal made in return for a 2011 international bailout. Since taking office, however, Mr. Costa also has had to reaffirm his commitment to the fiscal targets set for Portugal by the European Union.
Faced with such budgetary constraints, the new political leaders of southern Europe may make more headway in introducing political reform, according to analysts, particularly in a country like Spain, where a majority of voters voiced their frustration on Sunday not only with austerity but also with stagnant, closed and often corrupt establishment parties and the institutions they support.Faced with such budgetary constraints, the new political leaders of southern Europe may make more headway in introducing political reform, according to analysts, particularly in a country like Spain, where a majority of voters voiced their frustration on Sunday not only with austerity but also with stagnant, closed and often corrupt establishment parties and the institutions they support.
Mr. Iglesias, the leader of Podemos, said at a news conference on Monday that his party would “extend a hand” to those willing to push through major reforms, but without committing support to any specific government leader.Mr. Iglesias, the leader of Podemos, said at a news conference on Monday that his party would “extend a hand” to those willing to push through major reforms, but without committing support to any specific government leader.
“All of us must do some thinking in the coming weeks, but particularly the old parties,” Mr. Iglesias said. The election, he added, needed to result in “a new political system” for Spain.“All of us must do some thinking in the coming weeks, but particularly the old parties,” Mr. Iglesias said. The election, he added, needed to result in “a new political system” for Spain.
For now, however, Mr. Rajoy faces an uphill struggle to form a government and avoid a period of prolonged political uncertainty, even a new election, that could undermine Spain’s fragile economic recovery. The main Spanish stock market index fell 3.6 percent on Monday.For now, however, Mr. Rajoy faces an uphill struggle to form a government and avoid a period of prolonged political uncertainty, even a new election, that could undermine Spain’s fragile economic recovery. The main Spanish stock market index fell 3.6 percent on Monday.
Mr. Rajoy said at a news briefing on Monday that “the fragmentation of political forces cannot be an element of paralysis, blockage and inaction,” which could also endanger Spain’s economy.Mr. Rajoy said at a news briefing on Monday that “the fragmentation of political forces cannot be an element of paralysis, blockage and inaction,” which could also endanger Spain’s economy.
Among various scenarios for a possible coalition government, the only one that would ensure a parliamentary majority would be an alliance of Mr. Rajoy’s Popular Party and the opposition Socialists, led by Pedro Sánchez.Among various scenarios for a possible coalition government, the only one that would ensure a parliamentary majority would be an alliance of Mr. Rajoy’s Popular Party and the opposition Socialists, led by Pedro Sánchez.
Such a “grand coalition” has governed in countries like Germany, but it would be unprecedented for Spain. It would also require resolving a very difficult relationship, given a heated confrontation between the embattled leaders of the two parties during the campaign.Such a “grand coalition” has governed in countries like Germany, but it would be unprecedented for Spain. It would also require resolving a very difficult relationship, given a heated confrontation between the embattled leaders of the two parties during the campaign.