Sunday elections in Andalusia to fuel fears of political instability in Spain

The 2015 Spanish electoral marathon will start on Sunday in Andalusia: the snap elections in the second-largest region (14% of Spanish GDP) will be followed by elections in 13 out of 15 regions on 24 May (together with municipal elections), Catalan elections on 27 September and, finally, general elections before 20 December.

Societe Generale notes....

• Looking ahead to Spain' general election, Sunday's vote will provide some insights into the real level of  Podemos' and Ciudadanos' popular support and whether any agreement between the traditional parties and these two "new" parties might be possible. 
  
  
• We believe that the late 2015 general elections will bring a long period of political instability and lack of reform - preventing any improvement in Spain's potential growth rate (stuck at around 1%) and increasing the risks for Spain's medium-term debt outlook.