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Spain's next government likely to be unstable

It may not even last a full parliamentary term, given that it has to be formed by more than two political parties with different agendas.

The political uncertainty has the potential to undermine the country's economic recovery with GDP growth forecast by the government to be 2.7 per cent this year following the worst recession in decades that saw a property crash, and unemployment peaking at 27 per cent.

THE ruling right-of-centre People's Party (PP) emerged on Sunday as the largest party in Spain's second general election in six months, but once again short of an overall majority. At a time of post-Brexit referendum market jitters, the vote sets off what could be further protracted coalition