Spain is on track to get a new government Tuesday, but its economic and political future remains uncertain.
Socialist leader Pedro Sanchez is set to receive enough support at a parliamentary vote Tuesday that will put an end to almost one year of political uncertainty. Sanchez won a snap election in April of 2019 but struggled to form a government led by his
"The new PSOE-Unidas Podemos government will not probably have a stable parliamentary majority to rely on, which means it will have to negotiate most policy measures on a case-by-case basis with other parties," Antonio Barroso, deputy director at the research firm Teneo, said in a note Friday. Nonetheless, Florian Hense, economist at Berenberg bank, told CNBC Monday that it is "not very likely" the new government will last until the end of the mandate.
"Negotiations between the central and Catalan regional government are unlikely to produce a lasting compromise, but will probably extend for much of 2020 or beyond, giving ERC a reason to remain engaged," Federico Santi, senior analyst at the research firm Eurasia Group said Friday.
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