FXstreet.com (Barcelona) - The main risk event over the weekend was the Spanish regional elections as Galicia and Basque Country went to the polls on Sunday. According to Macro Strategists J. Reid and C. Tan at Deutsche Bank, “With the central government relying on the cooperation of the regions in its fiscal consolidation efforts, the media had hyped the election in Galicia – which happens to be Rajoy's home region – as a pseudo-referendum on the Spanish government's austerity and reform programs.”
Early poll results show Rajoy's People's Party not only retaining its majority in Galicia, but managing to increase its absolute majority by three seats to 41 out of 75 in the region's parliament (FT). Opinion polls before the vote had indicated the PP would win 39 or fewer seats, so the result is probably a mild positive for Rajoy's agenda and for markets in general. The rival Socialist Workers Party's share of seats dropped to 18 from 25.
Early poll results show Rajoy's People's Party not only retaining its majority in Galicia, but managing to increase its absolute majority by three seats to 41 out of 75 in the region's parliament (FT). Opinion polls before the vote had indicated the PP would win 39 or fewer seats, so the result is probably a mild positive for Rajoy's agenda and for markets in general. The rival Socialist Workers Party's share of seats dropped to 18 from 25.
