After general elections in Spain in December 2015 and June 2016 failed to return a government, it appeared that Spain was headed for a third general election in 12 months. In order to avoid this, the Socialist Workers’ Party agreed on 23 October not to block the formation of a new government led by the People’s Party and current Prime Minister, Mariano Rajoy. After 10 months of political deadlock, the new government was sworn in on 31 October 2016.

December 2015 election

The results of the Parliamentary election on 20 December 2015 led to several months of political uncertainty in Spain. Increased support for newer parties such as left-wing Podemos and centrist Ciudadanos served to break the traditional two-party dominance characterising Spanish politics since the 1970s, with the Socialist Workers’ Party (PSOE) on the centre-left and the Union of the Democratic Centre, People’s Alliance, and the current People’s Party (PP) on the centre-right. With the PP winning 123 seats, the PSOE 90 seats, Podemos 69 seats and Ciudadanos 40 seats, no party reached the 176 seats required to form a government. Negotiations to form a government failed and King Felipe VI announced a second general election for June 2016.

June 2016 election

On 26 June 2016, Spain held the first repeat election in its democratic history. The PP won 137 seats, the PSOE 85 seats, Podemos 71 seats and Ciudadanos 32 seats. The remaining 25 seats were divided between smaller parties. Once again, no party reached the 176 seats required. Prime Minister and leader of the PP, Mariano Rajoy, continued to lead the country in a caretaker capacity, as negotiations once again got underway. Despite Ciudadanos leader, Albert Rivera, previously calling for his resignation, Prime Minister Rajoy negotiated the support of Ciudadanos for a new PP-led government in August on the basis of a number of key reforms. The support of the 32 Ciudadanos MPs and a member of the regional Canarian Coalition brought his support to 170 MPs of the required 176. A proposed minority government was rejected by a majority in the Parliament on 31 August, with the PSOE, Podemos and Parties in the Basque and Catalan regions voting against the Prime Minister. Constitutionally, the deadline for the formation of a government was set for 31 October, with a third round of elections in December the likely result if no government was formed.

Breaking the deadlock

Pedro Sánchez, who led the PSOE in both elections, opposed returning Prime Minister Rajoy to power in a minority government. The continuing deadlock became increasingly unpopular within the Party, alongside dissatisfaction with the PSOE’s electoral performance. Mr Sánchez was pressured to resign on 1 October, after several days of internal divisions during which 17 of the 35 PSOE executive committee members resigned in protest at his stance. The PSOE held an extraordinary Party meeting on 23 October, where its members chose between contesting a third general election or allowing Prime Minister Rajoy to govern for another term. Under interim leader Javier Fernández, the PSOE voted, by 136 votes to 96, to abstain from the decisive Parliamentary confidence vote in Prime Minister Rajoy and thereby facilitate the formation of a minority government. Mr Fernández stated that abstention was the “lesser evil” in order to avoid a third election in 12 months, which he described as being “the worst solution for the country and the PSOE”.

King Felipe VI asked Prime Minister Rajoy to seek Parliamentary approval for a new government, with a first vote being held on 27 October and a final vote held on 29 October. The PSOE agreed to oppose the Prime Minister in the first vote, where an absolute majority of votes in favour was needed, but to abstain from the second vote, where a simple majority of votes in favour was required. Having lost the first vote, the second vote proved successful for Prime Minister Rajoy. He was supported by 170 MPs, with 111 MPs voting against and 68 MPs abstaining from the vote. 15 PSOE MPs ignored the Party decision to abstain and rejected the proposed minority government.

Prime Minister Rajoy took the oath of office on 31 October during a ceremony at the Zarzuela Palace in Madrid, marking an end to the 10-month political deadlock in Spain. While minority governments have been in power several times, the PP minority of 137 seats in the current Parliament represents the smallest ruling minority since Spanish democracy was re-established. Issues to be faced by the new government include setting a new budget for 2017 to meet EU deficit targets, as well as the ongoing campaign for independence in Catalonia.

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