Markets disregard Spain's election winner

The interest rates on Spanish government bonds rose on the day after the election victory of the conservative People's Party (PP). This is a cold shower for prime minister-elect Marian Rajoy, writes the liberal daily NRC Handelsblad: "The lack of enthusiasm on the markets also has something to do with the doubts that Rajoy was also unable to allay as leader of the opposition during the election campaign. That the PP would continue with the already initiated austerity policy was already known. But Rajoy did not go into detail. ... However he is under great time pressure. Next year he needs to cut an additional 18 billion euros in spending or try to rake in more taxes in a country where a fifth of the employable population and 40 percent of its youth are unemployed. The financial markets won't give him much time. ... Election victories and majorities are not enough nowadays. This is basically the main conclusion to be drawn from the first reactions to Rajoy's success."

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