In a widely expected but still potentially destabilizing development, Spanish conservatives and pro-independence Catalonians voted to back a slate of amendments to a government budget on Wednesday by a wide margin of 191 votes out of 350, defeating the funding bill, and setting the stage for Socialist Prime Minister Pedro Sanchez to call for new elections.
An election would be Spain's third general election in less than four years, following the vote that led to the formation of Sanchez's fragile socialist-led minority government last year. Bloomberg reported that Sanchez might wait until his cabinet meeting on Friday to call for the elections, which would most likely be set for April 28, according to local media reports.
IBEX - Bill - Uncertainty - Stocks - Risk
The IBEX edged lower after the bill was defeated, as political uncertainty weighed on Spanish stocks. Meanwhile, the 10-year risk premium over German debt widened by more than 100...