Skip to content
Sunday 6 September 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,831.09
0.00%
DAX
26,046.40
+0.17%
CAC 40
8,278.77
-0.09%
STOXX 50
6,392.93
+0.16%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Sunday 23 October 2016 3:50 pm

PSOE agree to end Spanish political deadlock after 10-month impasse

By: Jake Cordell

Add as a preferred source on Google

Spain is on course to emerge from 10 months of political deadlock after the opposition socialist party agreed it would not block the centre-right Popular Party from forming a minority government.

Mariano Rajoy has governed as head of a weak and interim government since the end of last year when the PP lost their majority in parliament. After elections in June – which were overshadowed by the UK's vote to leave the EU three days before – the situation remained deadlocked, with no party in an outright majority and no viable coalitions possible.

The socialist party, PSOE, however, has now decided it will not block Rajoy's plans to govern as head of a minority government, by abstaining, instead of voting against, his legislative programme. The move comes after PSOE ditched their former leader Pedro Sanchez for not contemplating reaching a deal with Rajoy over the summer.

Read more: EU refuses to fine Spain and Portugal for budget breaches

Failure to form a new government by 31 October would have led to fresh elections later this year and seen Spaniards return to the polls for the third nationwide ballot in 12 months. Amid fatigue and disenchantment with both PP and PSOE – the two largest parties – and rising support for disruptive left-wingers Podemos, PSOE did not want to head to the polls again, and opted instead to form the official opposition. 

The vote by PSOE, held today, however, revealed the bitter division within the party, with 139 members of the federal committee supporting the plans but a sizeable 96 voting to continue with impasse. 

Rajoy will also command the support of new centrist party Ciudadanos, the fourth largest in the parliament, when he puts his plans to parliament over the coming days.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Politics

Related Topics

  • International

Trending Articles

  • Victoria Beckham owed £350,000 by Harvey Nichols

  • Iceland boss Richard Walker vows to set up shop on Falkland Islands

  • Don’t underestimate the free trade agreement Britain just joined

  • As it happened: FTSE 100 wavers as weak housebuilding drives faster construction downturn

  • M&G: FTSE 100 giant hits out at Rayner’s ground rent cap as it suffers loss

More from Morning Wire

  • Farage vows to call ‘national emergency’ on day one

    Politics
    Nigel Farage in Parliament, addressing a female clerk holding a document, with other parliamentarians in the background.
  • Reform to slash HMRC officials’ pay if taxpayers wait too long

    Politics
    Robert Jenrick smiling at a podium with BRITISH WORKERS FIRST text, flanked by Union Jack flags at a press conference.
  • Burnham bounce: PM gets popularity boost – at Farage’s expense

    Politics
    Andy Burnham laughing outdoors in a candid moment, May 2026, capturing a lighthearted political event atmosphere.
  • Reform sidelines crypto industry at pivotal conference

    Politics
    Nigel Farage and another man on stage discussing crypto and UK reform, with Bitcoin on screen.
  • ‘They want business on board’: How Reform UK is wooing City chiefs at its conference 

    Politics
    Reform UK leaders Nigel Farage, Richard Tice, and others smiling on stage against a blue background
  • ‘If that isn’t a business interest, I don’t know what is’ – Reform in donor sting crisis

    Politics
    Nigel Farage speaking at Reform UK rally in Birmingham, February 2026, addressing supporters in a crowded venue
  • Farage: Foreign donations row is ‘loose pub talk’

    Economics
    Nigel Farage at a Reform UK conference, gesturing from a podium with the party logo and CONFERENCE 2026 in background
  • Burnham forgets, the Labour Party is a moral crusade or it is nothing

    Opinion
    Andy Burnham, in a dark suit, speaks at a podium outside 10 Downing Street, with onlookers behind him
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook