New election called amid signs of political uncertainty affecting the Spanish economy

Spain is set for a further period of political uncertainty as the deadline passed for the country's political parties to come to an agreement on the formation of a government following the December 20^th election. A new vote has been called for June 26^th, with parliament likely to meet again towards the end of July. If, as seems likely, the result of the new election is similar to that of the first, it could be late into the third quarter of the year before Spain has a permanent government in place.