Sagging Spain holds lessons for Britain

Spain's new Prime Minister, José Luis Rodriguez Zapatero, is faced with a country on the verge of economic crisis as the housing market collapses. And with the UK in a similar state, we should be keeping a close eye on his progress.

The Madrid stock exchange rose in the wake of Jos Luis Rodriguez Zapatero's Socialist victory in the Spanish general election on Sunday, so the Prime Minister now has a "clear mandate to revive the sagging economy", says The Times.

However, Zapatero fell seven seats short of an absolute majority in the 350-seat parliament, so he will have to rely on ad-hoc support from regional parties. Nevertheless, he now has a political authority that lays to rest the "lingering controversy" over the Socialist victory in 2004, days after the Madrid train bombings.

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