Spain: PSOE-led minority government most likely outcome - ING

Steven Trypsteen, an economist at ING, notes that the latest polls show that Spain's Socialist Workers Party, the PSOE, should remain the largest party but may lose some votes compared to the April election. 

• "The party is projected to receive 27% of the vote, giving it about 117 seats. In April, it received 29% of the vote and 123 seats. The People's Party (PP), on the other hand, is forecast to do better, with polls showing that it will receive 20% of the vote, up from 17%. This has a large impact on seats, potentially rising to 90 - a gain of 24 compared to the previous election.
• The two main opponents who challenged the two traditional parties (the PP and the PSOE) after the financial and eurozone crisis are likely to lose votes and seats, according to the latest polls. Citizens could get half of the votes received back in April, falling to just 8% from 16%. In terms of seats, this suggests a drop to just 14 from 57, limiting the party's power. The left-wing Podemos is also projected to lose some votes, though the fall may be less dramatic compared to Citizens. The party may get 13% of the vote compared to 14% during the previous election. This implies 34 seats in parliament, down 8 from the last election.
• Voting intentions appear to have changed since the April election. But these changes will not make it easier to form a government so the political situation is likely to remain difficult after this weekend’s vote. Still, pressure to find a solution after four elections in as many years will rise. In our view, a minority government led by the PSOE is the most likely outcome."