Spanish PM Sanchez calls November 29 snap election to end parliament deadlock
EWP•Pedro Sanchez called an early election for November 29 after parliament rejected key housing decrees. His Socialists trail in most polls, while Spanish stocks and government bonds were broadly steady after the announcement.
1. Election follows housing defeat
Sanchez called the snap election after a fragmented parliament rejected the government's housing decrees last week, following widespread protests. He said Spain needed to renew public support and win a larger progressive majority in parliament.
2. Polls favor opposition coalition
Sanchez's Socialists trail in nearly every opinion poll. Polls suggest a coalition led by the conservative People's Party with support from Vox is the most likely outcome, potentially bringing the far-right party into central government for the first time since Spain's return to democracy.
3. Markets steady
Spain's blue-chip index was flat after the announcement, while government bonds were broadly steady. The opposition People's Party welcomed the vote; its leader, Alberto Nunez Feijoo, was due to hold a news conference later Monday.
