Spain's ruling PP gets worst local election result in 20 years

Spain's ruling People's Party (PP) took a battering in regional and local elections on May 24 after voters punished Prime Minister Mariano Rajoy for four years of severe spending cuts and a string of corruption scandals.

In a test of the national mood ahead of general elections expected in November, the PP suffered its worst result in more than 20 years to herald an uncertain era of coalition as new parties rose to fragment the vote. 

Spaniards rejected the stability offered by the PP and rival Socialists which have alternated in power since the end of dictatorship 40 years ago and opted for change in the shape of new parties - market-friendly Ciudadanos ('Citizens') and anti-austerity Podemos ('We Can'). 

Rajoy's future looked bleak as his strategy to bet on an accelerating economic rebound to win a second term later this year was seriously undermined by his party's poor showing. 

"It's a drubbing for the PP. The fear factor did not come into play and people voted for Podemos and Ciudadanos," said Jose Pablo Ferrandiz of leading pollster Metroscopia. 

Although the PP got more votes than any other party, it and the rival Socialists fell short of overall majorities in most areas. The two parties will have to negotiate coalitions with minority parties in the 13 of Spain's 17 regions that voted on Sunday alongside more than 8,000 towns and cities. 

Spain has virtually no tradition of compromise politics and the fragmented vote is likely to result in weeks of pact-building in the regions which hold substantial devolved power and determine spending in key areas like education and health. 

"Market sentiment towards Spain may be favourable but the political scene is becoming a lot more fragmented, boding ill for...