The new Spanish Prime Minister, Pedro Sanchez, leader of the largest left wing coalition government in the Western world, needs to get his skates on with regards to having a national budget approved - it’s now been on the table for over two years - if he intends to stop the slowdown in the economy. In the final quarter of last year, Spain enjoyed an economic sprint finish, out performing the likes of France, but it has suffered a sluggish start to the year and Brexit is bound to have an impact on the Spanish, and other EU economies, when the UK eventually pulls the plug on the billions it has been pumping into the EU block for the best part of the last 40 years.
Sanchez, during his many months in limbo when he was unable to get himself over the line and invested as Prime Minister, went on the record stating that he wanted Spain to fill the gap left by the UK and become one of the three power houses in the European Union alongside France and Germany. However, both of the latter are sliding into economic strife and the question has to be posed as to which countries are going to fill the financial void left by the UK and how - raising taxes? The yellow jackets in France will have a field day if Macron is foolish enough to go down that road while Germany is facing a political shake up and tax hikes will not be a vote winner. It’s not just the UK which may pay the price for Brexit.