Bank of Spain warns of econimic risk over political deadlock

The Bank of Spain has waded into the ongoing political crisis at the top levels of government, after warning that the failure of the parties to resolve their differences and form a government is harming the Spanish economy.

The banks new quarterly report forecasts growth, but not at the pace expected by the government. In it they cite uncertainty over economic policy as the main risk to a return to growth.

The report also makes a note of geopolitical and financial market tensions at the international level, which could have an impact on Spain’s economy.