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FT: Cost of living in Spain shakes Pedro Sanchez’s popularity

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The conservative opposition of the socialist government takes an 8-point lead in the polls.

High unemployment rates and the cost of living make up an explosive mix that gives the lead to the People’s Party, note in their publication the Financial Times. The conservative opposition of the socialist government takes an 8-point lead in the polls.

“Sanchez is facing the most difficult year since he took power four years ago,” says Luciá Méndez, one of the founders of El Mundo. Polls give the conservative opposition a lead of almost 9 points. “It’s the first time polls show him losing ground, at a time when the economy is getting worse”.

The danger for Sanchez became visible when the center-right opposition recorded a resounding victory in Andalusia, a traditional stronghold of the Socialists. Despite the defeat, Sanchez claimed that “the government remains strong”, the newspaper notes.

The state of the economy will determine the outcome of the election. However, Sanchez will delay holding elections until December 2023 – as long as he can – in the hope that the economy will recover in the meantime.

And while the unemployment rate fell to a 14-year low in the second quarter of the year, a small increase recorded in July caused much concern. As Pablo Simón, professor of Political Science at Carlos III University in Madrid, explains, “No economic issue is more important in Spain than unemployment. If it starts to rise again, it will be a major issue in terms of the elections.”

In Spain, the unemployment rate continues to be one of the highest in the European Union, reaching 12.6% in July 2022 while, for example, in Greece the rate is at 11.4% in the same month (down from 12.3% in June).

Last week the Spanish parliament instituted measures to save energy in the country. Among other things, limits are provided for the temperature of the air conditioners.

Sanchez sought to regain momentum with a $9 billion package that includes pension increases, tax cuts and benefits to support households struggling to cope with rising energy costs and inflation that has hit 10. 8% in July (the highest rate in the last 38 years). At the same time, he imposed high taxes on banks and energy companies. Alberto Núñez Feijóo, leader of the People’s Party, accused the government of “fiscal populism” while questioning the efficiency of the government’s energy-saving measures and the impact they could have on consumption and tourism.

In any case, Feijóo, since his election in April, has managed to unite the People’s Party after months of bitter infighting. In fact, since he took over the reins of the party, he managed to surpass Sanchez in the polls, especially after the victory in Andalusia. In fact, it seems that the People’s Party is now expanding in two directions, attracting both centrist voters who had previously voted for the Socialist Party and supporters of the far-right Vox. Many attribute its prevalence to the fact that the world is tired of political instability.

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