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Spanish vote heralds more austerity

Spanish vote heralds more austerity
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First Published: Fri, Nov 18 2011. 09 01 PM IST

Election frontrunner: Popular Party leader Mariano Rajoy greeting supporters at the Plaza Valencia bullring in Valencia on Sunday (Getty Images)
Election frontrunner: Popular Party leader Mariano Rajoy greeting supporters at the Plaza Valencia bullring in Valencia on Sunday (Getty Images)
Updated: Fri, Nov 18 2011. 09 01 PM IST
Madrid: Spaniards look poised to elect a new government with a clear mandate for change, at a time when political turmoil in Greece and Italy has brought a sharp escalation of Europe’s debt crisis.
Election frontrunner: Popular Party leader Mariano Rajoy greeting supporters at the Plaza Valencia bullring in Valencia on Sunday (Getty Images)
Sunday’s elections bring the opportunity to shore up confidence in one of the euro zone’s most indebted economies after the collapse of governments in Italy and Greece earlier this month spooked investors and sent borrowing costs soaring for even some of the highest-rated members of the common currency area. Investors are especially concerned about the ability of Italy to repay a debt load of €1.9 trillion, nearly a quarter of all euro zone debt.
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A growing chorus of economists and euro zone politicians are saying the only way to the stem the crisis is for the European Central Bank (ECB) to aggressively ramp up its purchases of government debt.
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The Wall Street Journal
wsj@livemint.com
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First Published: Fri, Nov 18 2011. 09 01 PM IST
More Topics: Spain | Elections | Economic Crisis | ECB | Euro Zone |