Editorial: The “capital flight”

Now  we know that political uncertainty upsets investors but to suggest that there has been a “capital flight” from the Balearics since the local elections last month is an exaggeration to say the least. The outgoing President of  the Balearics, Jose Ramon Bauza, has suggested that investors are concerned about the political uncertainty at the moment as three left wing parties battle to form a coalition government. But I would say that it is a question of wait and see rather than alarm bells ringing. No-one really knows what we can expect from the new local government when it is sworn in later this summer. Granted that the signs are not good;the three left-wing parties, the Spanish Socialist Party, (PSOE), the nationalist left wing party,Més, and the protest party, Podemos, are experiencing difficulties in reaching an accord to form a government.  The problem appears to exist between the PSOE and Podemos but ofcourse it is still early days. Before the alarm bells start ringing I think that we should give the three parties the benefit of the doubt. The new local government has been democratically elected by the people of the Balearics who wanted change after four years of rule by the Partido Popular. At the moment they are very much an  unknown quantity. Now obviously the Partido Popular, looking ahead to the general elections next year, are using scare tactics. They are attempting to trash the image of their rivals but not very successfully.