Spain Vote Threatens To Drive Out Socialists

Spanish voters go to the polls today in the midst of the eurozone debt crisis with polls suggesting they will oust the ruling Socialist party.

The current prime minister, Jose Luis Rodriguez Zapatero, has already announced his intention to stand down after the election, following criticism for his handling of the country's economy.

His handpicked successor Alfredo Rubalcaba looks almost certain to be defeated by the veteran conservative Mariano Rajoy.

The election campaign was fought over the country's parlous finances.

Unemployment stands at over 21%, the highest in the European Union, growth has stagnated and the collapse of the housing market has exposed worrying levels of private debt.

To make matters worse, the sovereign debt crisis in the eurozone has made it even more expensive for the Spanish government to raise money, with interest rates nearing the 7% barrier on 10-year government bonds.

Mr Rajoy is expected to introduce a wide-ranging austerity package, although he has been coy on specifics.

Professor Gayle Allard from the Madrid Business Institute says he will need the help of the Socialist party if he is to succeed.

"Particularly with labour market, collective bargaining, and pensions reform they are going to need a consensus of the two parties," the professor told Sky News.

"I would hope that in a moment of crisis like this you could have a grand coalition".

The eurozone debt bomb has seen political fortunes tumbling across Europe.

In February, Ireland's prime minister Brian Cowen was the first to fall after a humiliating bail-out, soon followed by Jose Socrates of Portugal and then Iveta Radicova of Slovakia, who lost a confidence vote on the stability facility.

More recently, Greece's prime minister, George Papandreou, went as did Italy's Silvio Berlusconi: the biggest scalp of the crisis so far.

Today Mr Zapatero is likely to join that list, as Spanish voters show their anger over the country's dire financial straits.