Spain election fragmentation may require fresh polls
Significance A fragmented parliament and party policy divisions mean there are no straightforward government coalition options. Some of the six parties with fewer than ten seats are likely to be involved in any new government line-up, as Spain's now-four substantial parties will find it hard to produce a government among themselves. Impacts Prime Minister Mariano Rajoy's leadership of the PP may be coming to an end. The PP is the party least suited to the new era of coalition politics: adapting will be a challenge for it. Podemos' strong showing in Catalonia and the Basque Country will force pro-independence parties there to reconsider their positions. Even if other parties agreed on constitutional reform, the PP's majority in the Senate could block it. Uncertainty about the next government and reform prospects will hit international confidence and could push up debt-servicing costs.