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Comeback-Kid Sanchez Goes for the Knockout: Postcard From Madrid

Comeback-Kid Sanchez Goes for the Knockout: Postcard From Madrid

(Bloomberg) -- Pedro Sanchez’s Socialists have a chance to grab control of Madrid for the first time in 24 years, a feat that could help propel the acting prime minister toward a second term and make him a political force beyond Spain.

Madrid’s regional government has been a fiefdom for the rival People’s Party since the mid-1990s, and controlling the engine room of the Spanish economy has been a key pillar of the conservatives’ power — which has withered under new chief Pablo Casado.

Comeback-Kid Sanchez Goes for the Knockout: Postcard From Madrid

The PP’s wobbles hand Sanchez the opportunity to consolidate his authority on Sunday, when Spaniards will complete a two-legged electoral marathon. After a national ballot on April 28, voters will select mayors for more than 8,000 city halls and leadership for most of the country’s 17 regions — as well as decide on European Parliament representatives.

“The message from April 28 was clear: Spaniards said they wanted to look to the future,” Sanchez said at a campaign rally last week. “There can’t be a vote to move Spain forward and then a regression in the regions and the municipalities.”

Spanish authority is highly decentralized, and regional governments have significant sway over policy and government spending. That means wins in bellwether regions like Madrid will matter more to Sanchez than a sweep of seats at the European Parliament. If he gets that backing, the 47-year-old can get down to the business of negotiating the support he needs to govern — including from Catalan separatists — and may even attempt single-party minority rule.

Comeback-Kid Sanchez Goes for the Knockout: Postcard From Madrid

A win on Sunday would also play into a broader plan by Sanchez to leapfrog Italy in Europe’s pecking order, according to people close to the prime minister. Spain, the euro area’s fourth-largest economy, has traditionally lacked the political clout in Brussels of No. 3 Italy, but Sanchez and some of his aides think Rome’s euro-skeptic turn means it’s time for Spain to punch above its economic weight.

If he’s able to widen his power base, Sanchez will aim to appoint his people to key positions in Brussels to ensure Spain’s voice on European matters is heard loud and clear, said the people, who asked not to be identified discussing private deliberations. Meanwhile, tensions between France and Germany — the traditional core of European decision-making — could open the way for him to further bolster his standing.

Sanchez, who was once ousted as leader of the Socialists, has mounted a surprising comeback. With only 84 lawmakers in Spain’s 350-seat Parliament, he struggled to pass significant legislation during his 10 months in power. Then after failing to push through a budget earlier this year, he called snap national elections to break the stalemate.

The gamble paid off, and Sanchez’s party added 39 more lawmakers to win the greatest number of seats. He’s now in position to become a rising star in Europe, with a playbook on how to fend off populist incursions and buck the trend of falling support for mainstream parties.

--With assistance from Zoe Schneeweiss.

To contact the reporters on this story: Jeannette Neumann in Madrid at jneumann25@bloomberg.net;Ben Sills in Madrid at bsills@bloomberg.net

To contact the editors responsible for this story: Flavia Krause-Jackson at fjackson@bloomberg.net, Chris Reiter, Iain Rogers

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