Spain's Zapatero Says No To New Term And Now Austerity May Be In Danger

Zapatero

Spain’s Socialist Prime Minister, Jose Luis Rodriguez Zapatero, has turned down the chance to run for a third term and announced he is stepping down next year, according to Bloomberg.

Zapatero, who has been a staunch supporter of austerity measures for his country, now leaves a political vacuum through 2012 that is likely to be dominated by debate over the future of his party.

That debate could make it difficult to get any new austerity reforms passed, as it may be political unfeasible for future socialist candidates to show support for such measures.

Markets don’t seem to worried, yet, with the IBEX is up and the yield on the country’s 10-year down on the news.

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