Spain's People's Party (PP) might not have won enough seats in the general election this weekend to govern alone but it is confident that it can hang on to power and lead a minority government, its vice secretary told CNBC on Monday.
The ruling conservative People's Party (Partido Popular), led by Prime Minister Mariano Rajoy, won the highest number of votes on Sunday but it only obtained 122 seats out of the 350-seat parliament, falling short of the 176 needed for a parliamentary majority.
This means Rajoy will have to partner with the Socialist party, which won 91 seats, or newcomers Podemos and Ciudadanos, who secured 69 and 40 seats respectively, to form a coalition or minority government. Spanish stocks fell on Monday with the IBEX down 2.2 percent as investors offered their gloomy verdict on the vote.
It is unlikely that the Socialists or Podemos will join Rajoy's PP and so his best bet might be to turn to the centrist, pro-European Ciudadanos to join PP in a minority, coalition government.