Bulletin: Parliamentary Fragmentation In Spain May Deter Fiscal And Economic Reforms

This report does not constitute a rating action. MADRID (S&P Global Ratings) Nov. 20, 2023--Spain has formed a new government comprising two parties, PSOE (Socialists) and Sumar. To pass legislation, this new coalition relies upon the support of an additional six political parties that, together with the governing parties, control 179 seats in the 350-seat lower house of parliament. Prime minister Pedro Sanchez will lead the center-left cabinet. The heterogenous composition of the government's parliamentary support means that any of the additional parties supporting the minority coalition could block the passage of legislation, including on policies critical to ensure that debt to GDP follows a downward path. The incoming administration's first priority will be to pass the 2024 budget. This

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Bulletin