Spain Prepares for Government at Last as Bonds Back Breakthrough

  • Rajoy may take office this week as Socialists drop veto
  • King Felipe begins consultations with party leader Monday

Mariano Rajoy.

Photographer: Emmanuel Dunand/AFP via Getty Images
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Caretaker Prime Minister Mariano Rajoy welcomed the imminent formation of a new Spanish government, after the opposition Socialists agreed to end a 10-month political impasse and let him rule for a second term. Spanish government bonds rose.

King Felipe begins two days of consultations with party leaders in Madrid Monday, the start of a process that should see Rajoy’s People’s Party back in power within days. A first confidence vote may go ahead on Oct. 27 with a second round in which Socialists abstain taking place two days later.