Spain posted its biggest fall in unemployment ever recorded in May as resorts hired staff ahead of a record influx of tourists, a potential boost for acting prime minister Mariano Rajoy in an election rerun in three weeks.

A majority of Spaniards would favour a coalition government led by the Socialist party and market-friendly newcomer Ciudadanos, according to a poll published by El País yesterday as Spain’s political deadlock continues.

Spain’s major parties, taking stock after the most fragmented national election result in the country’s history, have embarked on potentially long and arduous talks to form a coalition government.

The Catalan nationalist party CiU will win regional parliamentary elections in Spain on Nov 25, but will not gain an absolute majority, newspaper polls showed, weakening any bid for independence.

The far-right resurged in local elections in Vienna, the Austrian capital, securing the biggest gains in votes and mandates following a campaign laced with anti-Islamic rhetoric.