The premiership of Mariano Rajoy over Spain spanned from 2011 to 2018. First term (2011–2015) Mariano Rajoy became Prime Minister of Spain on 20 December 2011, after his People's Party's (PP) landslide victory in the 2011 general election. The PP's overall majority of 186 seats gave Rajoy a free hand to handle the country's political and economic situation for the next four years, attaining a parliamentary stability that his predecessor, José Luis Rodríguez Zapatero, had not enjoyed. However, Rajoy's use of decree-laws and the blocking of opposition bill amendments and parliamentary committees would earn him strong criticism from both the media and opposition parties throughout the Legislature, because of the perceived undue use his party made of such an absolute majority. In contrast, the previous ruling Spanish Socialist Workers' Party (PSOE) had suffered from the worsening economic situation, having its worst electoral performance since 1977 and being ousted from power amidst a climate of high unpopularity. Then-Prime Minister José Luis Rodríguez Zapatero had decided to stand down as PM candidate in early 2011, and as party leader once the quadrennial party conference—due for March 2012—was held. Alfredo Pérez Rubalcaba, PSOE candidate for the 2011 election and former Deputy Prime Minister, was elected as the new party's Secretary General in a tight fight against former Defence Minister Carme Chacón. Economic situation After taking office, Rajoy's government popularity in opinion polls began to erode after its U-turn on economic policy, which included the breaching of many election pledges. After it had promised to lower taxes during the election campaign of 2011, Rajoy's government announced a first austerity package ten days into office—including new tax rises and a spending cut worth €9 billion—as a result of a larger-than-expected public deficit of 8% (instead of the projected 6%). This was followed by a harsh labour reform, criticised as paving the way to cheapen dismissals and which was met with widespread protests and two general strikes in March and November 2012, and an austere state budget for 2012. The crash of Bankia, one of the largest banks of Spain, in May 2012 resulted in a dramatic rise of the Spanish risk premium, and in June the country's banking system needed a bailout from the International Monetary Fund (IMF). It was later revealed that Bankia, then directed by Rodrigo Rato, former PP politician, had falsified its accounts between 2011 and 2012 in order to create a