More political problems for Spain

After the PP party was sentenced in a corruption case, the PSOE, the socialist party, filed a motion of no confidence against the PP-led minority government of Mariano Rajoy (pictured). The motion needs an absolute majority, 176 of the 350 MPs, and it is not certain that this majority will be met.

Podemos said it will support the motion. But as the PSOE has 85 seats and Podemos 71, they are still 20 seats short to get the needed majority. Other parties will have to give their support too.

Ciudadanos, the liberal party that supports the minority government, which has 32 seats already, said it does not support the motion. Instead, they asked for new elections. Recent polls show that Ciudadanos is now the largest party in Spain and so it is not surprising that they are in favour of new elections.

Article 155 is still in force in Catalonia. As long as there is no regional government in Catalonia, this will be the case. Albert Rivera, the leader of Ciudadanos, said a strong government is needed to tackle the challenges in Catalonia.

Meanwhile, the spread between Spanish and German government bond yields increased slightly. The spread could widen further if tensions intensify.