THE POLITICAL AND ECONOMIC CONSEQUENCES OF THE PARLIAMENTARY ELECTIONS ON JUNE 26TH 2016 IN SPAIN
Because of the squared results on the Spanish parliamentary elections, which were held on June 26th 2016, no one achieved the 176 seats required for a parliamentary majority. As the outcome of the elections the uncertainty still remains on the possible formation of government in the Iberian country. The negative impacts of Great Britain's referendum on its EU-membership and the uncertainties of the elections in Spain can only be solved by a mutual agreement with the participation of all political parties. The two dominant political forces, the People's Party (PP) and the Spanish Socialist Workers' Party (PSOE) have to set by their conflict of interests and as responsible parties must strike a compromise not only on reshuffling the government, but also on the most important questions of the country (see the reform of the election system and the labour market and finally to solve the question of Catalonia within Spain). Only this multi-annual agreement between the two parties can be a guarantee to provide the political stability and to continue the necessary structural reforms in the southwest European country.