Spanish Prime Minister Jose Luis Rodriguez Zapatero called early elections as austerity measures erode support for his ruling Socialist Party and the country seeks to convince investors it can control its budget deficit.
Voters in the euro area’s fourth-biggest economy will go to the polls Nov. 20, moving up the election from March, Zapatero told a news conference in Madrid today. Spain will make an “extra effort” to meet deficit targets, he said.
“The decision to announce the elections calendar today is to project political and economic certainty for the next few months: about what is needed to do, what we’re going to do and about the date of elections,” Zapatero said.
Spain’s credit rating was put on review for a possible downgrade by Moody’s Investors Service earlier today as Spanish regions struggle to cut budget deficits and last week’s Greek bailout increases the risk that bondholders will have to pay for further European rescues.