CEOE, the Spanish employers’ federation, issued a statement this Monday urging the parties represented in the House of Representatives to reach agreements that ensure the highest possible level of political and economic stability. The memo, released by the business organization, makes the case for a parliamentary majority that brings the moderation necessary to support steady economic progress, protect welfare, and preserve social peace after the general elections held on Sunday, July 23.
The Popular Party’s candidate, Alberto Núñez-Feijóo, captured the most votes, yet the tally fell short of an absolute majority needed to govern in coalition with Vox. Facing a fragile arithmetic, the party leader signaled openness to an arrangement with the socialist candidate and incumbent Prime Minister Pedro Sánchez to accept a mandate following the vote count. From the Genoa balcony, Feijóo urged the PSOE and other political forces not to disrupt the functioning of the Spanish government again.
The CEOE presiding body indicated it would welcome such a possibility, while stressing a call for responsibility and emphasizing the need for a state-centered mindset to prevail in order to improve the economy, safeguard welfare, and maintain social harmony.
While not opposing some policies of the current coalition, the organization pointed to its minority partner, Sumar, in a timely manner today. United We Can, described by the CEOE as interventionist or resembling policies seen in undemocratic regimes elsewhere, was singled out by Antonio Garamendi at the employers’ plenary meeting last week.
Another path to governability, based on the current parliamentary math, would see Pedro Sánchez, with either explicit or tacit support from Junts, assemble a governing majority. Post-election discussions have already suggested that Junts will not back the socialist candidate for nothing, and a potential Catalan self-determination referendum was part of the campaign agenda. In this light, the CEOE underscored that any pact regarding Spain’s governance must respect the constitutional framework and be anchored in constitutional legality.
Entrepreneurs argue that stability is essential because the Spanish economy faces a slowdown that is likely to become more pronounced after the summer. They point to geopolitical tensions stemming from the war in Ukraine, ongoing restrictive monetary policy, and the persistent impact of high inflation on household consumption and business investment as critical factors shaping the current economic climate.