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Final Parties Agree To Deal, Ensuring Sanchez Will Win Investiture Vote
The final two parties have agreed to a deal with acting PM Pedro Sanchez's centre-left Spanish Socialist Workers' Party (PSOE) to ensure that at the next investiture vote (likely next week), Sanchez will be re-elected. The regionalist Basque National Party (EAJ-PNV) and Canarian Coalition (CC) each agreed to support a Sanchez investiture. Following the deal reached between the PSOE and the pro-Catalan independence Junts on 9 Nov, the acting PM will be able to rely on 179 out of 350 votes in the Chamber of Deputies, an outright majority.
- Prior to July 2023 general election the prospects of Sanchez remaining in power seemed unlikely, with the prospect of a leftist gov't headed by the PSOE given just a 30% probability in MNI's Election Preview, behind the core scenario of a right-wing Popular Party-Vox coalition. Nevertheless, a PP underperformance, and the ideological chasm between Vox and regionalist parties aided Sanchez in rounding up the requisite votes.
- As MNI notedon 9 Nov, the amnesty deal between the PSOE and Catalan separatist parties has sparked anger among conservatives and nationalists. Rioting at the PSOE HQ in Madrid continued for another night, with an estimated 8k in attendance, the highest number so far. The party's Brussels office was also vandalised, with 'traitors' spraypainted on the building. The new gov'ts reliance on pro-independence parties will ensure that the Sanchez administration does not have smooth sailing with regards to its legislative agenda in the coming weeks and months.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.