Spain's Economic Outlook After Elections

Outgoing Spanish Prime Minister Jose Luis Rodriguez Zapatero’s decision to call for early general elections, held Nov. 20, allowed Spain to have a smooth political transition. While the arrival of a new government in Spain will be quieter than in other members of the eurozone, such as Italy and Greece, the new government of Mariano Rajoy has immediate challenges — among them high private debt, a fragile banking system and growing unemployment — that threaten the new administration.