Spain sets election date

SPAIN’S prime minister dissolved parliament yesterday, setting the stage for a November 20 general election.

The election is likely to focus on an economy saddled with 21% unemployment, anaemic growth and gloomy future prospects.

Jose Luis Rodriguez Zapatero’s announcement kicks off the campaign for voting, widely expected to usher in a government led by the conservative opposition Popular Party.

Zapatero has served two terms spanning nearly eight years, but is not seeking re-election.

Besides its unemployment woes and sluggish growth, Spain’s borrowing costs are soaring as its economy struggles to shake off the outcome of a burst real estate bubble, raising periodic fears it might need an international bailout.

Zapatero moved up the elections in a bid to cut his Socialist party’s losses, although the stated reason is he wants a new government to have a fresh slate for budgetary and other economic decisions when the new year starts.

Under intense pressure from the EU, the US and international institutions, he has taken a bevy of austerity measures such as amending the constitution to force future governments to keep their deficits very low.

He said he does not expect to have to adopt any significant economic measures between now and November.