MADRID (Reuters) - Spain's center-right opposition stormed to an overwhelming election victory on Sunday as voters punished the outgoing Socialist government for a deep economic crisis.
The following are analyst and economists' comments on the outcome of the vote:
GAYLE ALLARD, POLITICAL AND ECONOMIC ANALYST, IE BUSINESS
"I think this is great news. They have the majority to push the through the kind of package Spain needs."
"Up to now the PP had not committed to anything but if they can now get a package of measures together and announce them that is positive for the markets."
ANGEL LABORDA, ANALYST AT MADRID THINK-TANK FUNCAS
"This could calm the markets, but until the new government does what it says it's going to do, nothing will change."
"We'll have to see if the change in now three countries, Italy, Greece and now Spain, can make a difference. Spain, together with their euro neighbours, can help to solve the problems in the euro zone."
CHARLES POWELL, MADRID-BASED INDEPENDENT POLITICAL ANALYST
"The PP's main priority short term is to start working on the budget. That will be a pretty lengthy complex process. But they may leak some of the main items on the budget to send the right signals."
NICHOLAS SPIRO, MANAGING DIRECTOR SPIRO SOVEREIGN STRATEGY
"From a market standpoint, an absolute majority for the PP is just what the doctor ordered. Mr. Rajoy will have a freer hand than his predecessor in that he will no longer be dependent on the support of the Catalans and the Basques to govern.
"If this helps put Spain's regional finances on a sounder footing, this will be a very positive development. The risk, however, is that more retrenchment pushes the economy back into recession. Mr. Rajoy will have to tread very carefully given the dire state of Spain's economy."
TERESA SADABA, PROFESSOR AT IESE BUSINESS SCHOOL
"The fact the PP has won by a large majority is a very good sign for the markets. It means stability. The best scenario now would be for Spain to announce some new emergency austerity measures but I am not sure whether this will happen or not."
NARCISO MICHAVILA, PRESIDENT GAD3 CONSULTING FIRM
"More people switched parties in this election than in any vote since 1982. And it's the first time in two decades that minority parties (as a whole) rose instead of falling."
NICOLAS LOPEZ, HEAD OF RESEARCH AT M&G VALORES
"An absolute majority for the PP gives them the margin to adopt the necessary measures."
"But these measures have to be convincing to have the desired effect on confidence."
"While these measures are being taken, the ECB will have to buy up bonds as it has being doing to maintain confidence."
(Compiled by Judy MacInnes, Manuel Maria Ruiz, Paul Day and Fiona Ortiz)