The week began with a leak. Moncloa and the Socialist Party are thinking about holding early elections in November instead of serving out the rest of their term in office and holding them in March.
The debate is critical and responds to reasonable investigations posed by analysts recently, over and above other concrete political issues within the government. Results following the May 22 elections have been gauzy, which is a discredit to the majority party that has been governing.
Appearances indicate the end of an era and a weakened executive that the parliament, who typically defends it, can no longer ignore.
Further, reforms now in progress could end in November. Specifically, the collection bargaining reform that has been approved by decree: it is a law that will become ordinary law.
The government will be in session next after summer vacations, and it is unlikely that they would present new structural reform projects at that time.
Holding elections in November would avoid a total and unreasonable retooling of the 2012 fiscal year budget. All signs suggest that another party should take over the executive. This means there will likely be budget delay that the markets will not take well.
