Rabobank analysts point out that this weekend will see an election in Spain which are unlikely to break the deadlock in the Spanish parliament.

“The PSOE is set to win the elections again, but forming a majority seems impossible. The radical right party Vox is set to gain substantially (one opinion poll has it on 16%, amazing considering the far right was negligible in Spain just a few years ago), while the liberal Ciudadanos will lose. While Spain’s economy is likely to continue to grow relatively fast in the short term, it is highly unlikely that the next parliament will deal with economic and fiscal challenges that hamper economic growth and public debt sustainability in the longer run.”