Spain’s PSOE faces uphill battle as PP, Vox eye parliamentary majority

Spain’s ruling PSOE is facing a tough contest as the opposition PP and Vox position themselves for a possible parliamentary majority, a shift that could reshape the country’s policy direction. The outcome matters because a right-wing bloc in control would likely alter Spain’s approach to EU relations and its domestic reform agenda. Investors should watch coalition arithmetic and any resulting changes to fiscal, regulatory and energy policy that could affect Spanish assets and EU-level negotiations.