SPAIN could create a major eurozone rupture in 2016, after the country's incumbent Government failed to secure a majority vote over the weekend, fear investors. Critics said the result had echoes of the Greek debt crisis that caused markets to crash earlier this year.
Spain's far-left anti-austerity party Podemos - similar to Greece's Syriza party - enjoyed unprecedented support, showed election results.Prime minister Mariano Rajoy’ People’s Party must now form a tricky coalition government, although it is unlikely to be with Podemos, which spells weeks of uncertainty ahead for investors.
And critics fear the new Government may start to turn its back on reducing the country's huge debt mountain, which could once again plunge the union into crisis further down the line.
The election result took the wind out of European markets this morning, with the Spanish main market the Ibex falling by almost 3 per cent.
