Spain is in political gridlock. The December 2015 failed to produce a candidate who could put together a coalition. New elections are on June 26.
Supposedly, to “not interfere” with the election process, the European Commission turned a blind eye to the hugely out of control Spanish budget.
In reality, the EC is doing everything it can to influence the vote towards corrupt liar Mariano Rajoy, the incumbent prime minister whose government collapsed, unable to form any coalition following the December 2015 election.
To aid in the electioneering, Rajoy purposely let the budget get out of control. That failed to work.
As part of his new election lie package, Rajoy told voters there would not be budget cuts but a leaked letter to EC president Jean-Claude Juncker proves otherwise.
Via translation from El Pais, please consider Rajoy Promises Brussels Further Adjustments if Elected.
“Dear Jean-Claude” begins a four page letter from Rajoy shortly before the Brussels decision to postpone until July a procedure that can lead to a fine for violating fiscal targets.
Spain closed 2015 with a deficit of 5.1% of GDP. But for now, it has managed to gain time. Juncker personally interjected against the opinion of several members of his cabinet, preferred to postpone the decision until after the June 26 election.
“We have concluded that it is not the right political moment to take this step,” said Commissioner Pierre Moscovici days.
Expect More Missed Targets
Spain’s deficit target has been repeatedly watered down for years. For 2015 the deficit was target of 4.2% and it was supposed to be 3% next year. Growth looks to weaken in 2016, so whatever targets the EC sets will be missed again.
Nothing will come of it. Threats have proven to be meaningless.
Above Chart Courtesy of El Pais.
Once again, the only possible two-party coalition that can lead to a majority is a “grand coalition” of PP and PSOE.
Pedro Sánchez, PSOE leader previously ruled out a coalition with Rajoy. If that holds again, another hung election is in the works again.
Meanwhile please note that “not interfere” really means “interfere” or you may be confused by what you read.
Lie When It’s Serious
Finally, it’s quite ironic that Rajoy’s lie went straight to EC president Jean-Claude Juncker.
Other than being a pompous Nannycrat, Jean-Claude Juncker is most famous for his statement “When it becomes serious, you have to lie“.
Mike “Mish” Shedlock