Spain is the next country set to test the resilience of southern Europe, after recent political convulsions in Italy battered global financial markets.
Unlike Rome’s power struggle, where markets were fearful a fresh election could be framed as a de facto referendum on Italy’s role in Europe, Spain’s political drama hinges on a no-confidence vote for Prime Minister Mariano Rajoy.
Last week, a long-running corruption trial — known as the Gurtel case — found dozens of people linked to Rajoy’s governing People’s Party (PP) guilty of benefitting from illegal kickbacks. That prompted socialist leader Pedro Sanchez to push for a vote of no-confidence against the incumbent.
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