The Sunday elections confirmed a change in the Spanish political order. It seems to be the end of the two party system inaugurated by Franco. The old order has changed. In Spain, Podemos has managed to capture the popular mood that had set in since the austerity drive initiated to meet the Eurozone crisis. In every Latin-European country, the people have turned against the austerity drive. In Spain, new parties like the Podemos and Ciudadanos have deprived the two mainstream parties of their majority- the incumbent popular party and the Socialist PSOE.
Of course, the political change may lead to chaos in Spain. No party can strike out on its own and dictate terms to the two main parties. The Socialists wish to form a coalition with the Podemos. But that depends on the Prime Minister gaining requisite support. Otherwise Spain may have to go for another election. If that happens, it will threaten the position of the European Union, especially of Angela Merkel’s Germany. The Spanish election signified a rejection of the austerity drive unlike in Greece. It will necessitate Brussels and Berlin revising their economic policy which has been imposed on European Union nations in the wake of financial crisis in different countries asking for a bail-out. That may also in the long term sap the basis of the European Union. As a result, the Spanish economy will have no alternative but to be in isolation. The question is: Will Spain be in a position to withstand further financial crises in the future?
