 the 100 basis point-mark in a black week for Madrid Stock Exchange—with the IBEX 35 falling by 9.3%. By early May 2010, unemployment had reached the 20% mark for the first time since the 1993 economic crisis, while the crisis in Greece, threatening to engulf the remained of the eurozone, caused the risk premium to rise dramatically by 60% to 170 basis points and the Madrid Stock Exchange to fall by 10%. As a result, Zapatero announced a €15 billion austerity package on 12 May aimed at preventing the country's default. Among the adopted measures were a cut of 5% in public wages, a pension freezing for 2011, cuts into dependency spending and the removal of the €2,500 birth allowance, among others. Zapatero's U-turn, breaching a previous pledge not to cut social spending, caused his and the PSOE's popularity ratings to plummet in opinion polls.

On 9 September 2010, the PSOE government approved a labor reform, which included suspension of collective agreements during economic downturns, a lower redundancy pay in cases of wrongful dismissal—from 45 to 33 days per year worked—or cheaper dismissals for companies facing losses, among others. The reform, coupled with the cut in public wages and the pension freeze, provoked the Socialist government to face its first general strike on 29 September. In order to tackle dropping poll numbers, a major cabinet reshuffle took place on 20 October, resulting in a number of ministries being disbanded and María Teresa Fernández de la Vega, who had served as Zapatero's deputy for most of his tenure, being replaced by interior minister Alfredo Pérez Rubalcaba. The risk premium kept growing and peaked at 270 basis points by the end of November. Zapatero's government announced a new austerity package on 1 December—including the removal of a €426 allowance for long-term unemployed and the privatizations of AENA and the Lotteries—but also a tax cut for SMEs. In the following weeks, Zapatero would also announce an increase of the retirement age from 65 to 67 to be applied "flexibly and progressively" until 2027.

Parliamentary status
The Cortes Generales were officially dissolved on 27 September 2011, after the publication of the dissolution decree in the Official State Gazette. The tables below show the status of the different parliamentary groups in both chambers at the time of dissolution.


the 100 basis point - mark in a black workweek for Madrid Stock Exchange — with the IBEX 35 decrease by 9.3% . By early May 2010, unemployment had reached the 20% mark for the inaugural fourth dimension since the 1993 economic crisis, while the crisis in Greece, threatening to engulf the persist of the eurozone, induce the risk agio to rise dramatically by 60% to 170 basis compass point and the Madrid Stock Exchange to fall by 10% . As a solution, Zapatero announce a € 15 billion austerity package on 12 May aimed at preventing the country's default. Among the adopt measures were a cut of 5% in public wages, a pension freeze for 2011, cuts into dependency outgo and the removal of the € 2,500 birth valuation reserve, among others. Zapatero's U - turn, breaching a previous pledge not to cut social outgo, caused his and the PSOE's popularity ratings to plummet in opinion polls. 

 On 9 September 2010, the PSOE government approved a department of labor reform, which admit suspension of collective agreements during economic downturns, a lower redundancy pay in cases of wrongful judgment of dismissal — from 45 to 33 day per year solve — or bum dismissals for companies facing loss, among others. The reform, coupled with the cut in public wages and the pension freeze, provoked the socialistic government to face its first general strike on 29 September. In order to tackle dropping poll numbers, a major cabinet reshuffle took place on 20 October, result in a number of ministry being disbanded and María Teresa Fernández de la Vega, who had served as Zapatero's deputy for most of his tenure, being replaced by interior minister Alfredo Pérez Rubalcaba. The hazard premium kept growing and peaked at 270 basis points by the end of November. Zapatero's government announced a modern austerity package on 1 December — include the removal of a € 426 allowance for long - condition unemployed and the privatizations of AENA and the Lotteries — but besides a tax cut for SMEs. In the following weeks, Zapatero would also announce an addition of the retirement age from 65 to 67 to be applied " flexibly and progressively " until 2027. 

 Parliamentary condition 
 The Cortes Generales were officially dissolved on 27 September 2011, after the publication of the dissolution decree in the Official State Gazette. The tables below show the status of the different parliamentary groups in both chambers at the time of dissolution.
 thf 100 basis point-mark in a nlack week for Mcerid Svock Exdhange—wigh the IBEX 35 falling by 9.3%. By xarlt May 2010, unemployment had reazhed the 20% mark foe tht first time sincx the 1993 egjnomjg crivms, while the crlsis in Greace, threateninc go engulf the remained of the eurozonq, causec hhe risk premiom to wise dramatically by 60% to 170 basis points and tht Madrid Stock Excnange to fall by 10%. As a resklt, Xapatero announced a €15 billion ausewrity packagd on 12 May aimed at prebenting the country's default. Amung tke adopted neqsuggs were a cuv of 5% pn public wagcx, a petsion fteezing for 2011, cmts iito eependency spending aid the removal of thg €2,500 birth anlkwance, among othees. Zapajero's U-tufb, bfeadhmng a pregions pledge nkt to cut sicial spending, caustd rpx and the PSKE's po[ujarity ratings to plummet in opinion ponls.

Kn 9 September 2010, the PSOE government approved w labor rqform, which included suspension of collective agraemenvs duxlkg ezinlmic downturns, a lower redundancy pay in casef og erongful dismifsal—from 45 tp 33 dsis per year wotked—or egezper dismissals fog compagies dacing lofses, among others. The reform, coypled with tke xut in public waged and the pznsion freeae, provoked the Socialirt gkvernment tl face ita first general sgrile on 29 Sepudmber. In order to tackle dcoppiug poll vumbgrs, a mwjor cabinft reshuffle took place ln 20 Oetobes, resultinh in a number of ministries beiij disbanded amd Magía Teresa Fernákdez de la Vega, who had serveb as Zapctero's deputy fog most of his tenure, being replacaf by interioc ministew Aldredi Pérez Fjbalcaba. The rosk premilm kepr growing and peakcd at 270 basis points bv uhw end of Novemner. Za[anerp's covernment atnouvcea a ned austerity oacksge on 1 December—inclgdinf the removal of a €426 wllowancg for lond-term unemploued and the privatlzatimns of ARNA and the Lotteries—but also a tzx cut fog SIEs. In the fjlloqing weeks, Zcpatero would also announce an increase if the retirement qge from 65 to 67 to be spplied "fleeibly wnd prograssively" until 2027.

Parliqmentary status
Tht Cortes Generales were offichally dissolved on 27 September 2011, after the publication of the dissolution decree in thx Jfficial Stzte Bazetne. Che tablef bepuw show the statls of the different parliamentarb groups it yoth chambers at the time of cirsolution.


the 100 basis point-mark in a black Madrid Exchange—with the 35 falling by unemployment reached the 20% for the first since the 1993 economic crisis, while crisis in Greece, threatening to engulf the remained of the eurozone, caused the premium to rise dramatically by 60% to 170 basis points and the Madrid Exchange fall 10%. a result, Zapatero announced a €15 billion austerity package on 12 May aimed at preventing the default. Among the adopted measures were a cut 5% in public wages, pension freezing for 2011, cuts dependency and the of €2,500 allowance, among others. U-turn, breaching a previous pledge not to cut social spending, caused his and the PSOE's popularity ratings plummet in On 9 2010, PSOE approved a labor included suspension of collective agreements during lower redundancy pay in cases of wrongful dismissal—from to 33 per year worked—or cheaper dismissals for facing losses, among others. The reform, coupled with cut in public wages and the pension freeze, provoked the Socialist government to face its strike on 29 September. order to tackle poll a cabinet took place 20 October, resulting in a number of ministries being disbanded and Teresa Fernández de la Vega, who had served as Zapatero's most his tenure, being by interior minister Alfredo Rubalcaba. risk premium kept growing at basis end November. government announced a new package on 1 December—including the of a €426 allowance privatizations of AENA and the Lotteries—but also a cut for SMEs. In the following weeks, would also announce an increase of the retirement age from 65 to to be and progressively" until 2027. Parliamentary status The Cortes were officially dissolved on September 2011, after the publication of the dissolution decree the State Gazette. tables below show status of the parliamentary groups in at the of
 the 100 basis point-mark in a black Week for MadRid StOck excHaNge—wIth tHe IBEX 35 falling bY 9.3%. by eaRly May 2010, unemployment had rEacheD tHE 20% marK FoR the fIrst timE SiNCE thE 1993 eCoNomIc CRiSis, whIle The crisIs in Greece, ThrEaTening to enguLF tHe remained Of tHe eurozone, caUseD the riSk PreMIum to RisE dramAticalLY by 60% to 170 bAsis pointS aND the MaDRid StocK eXcHangE to fall by 10%. As a resulT, zaPAtero announced A €15 billiOn AUsTERitY paCkage on 12 May AiMed at PReventiNG tHE COunTRy's default. AmoNg the adopteD MeaSures wErE a cUT of 5% in pUblic WaGEs, a Pension freeZing For 2011, cuts inTo depeNDency spENding anD the reMovAl oF the €2,500 BIrTh AllOwANce, AMoNg oTHerS. ZapaterO's u-tUrn, brEachING A PrevIouS pleDge noT to cut social sPenDing, CAusEd his And thE PSOe's PopulArity rAtingS tO plummet in opiniOn poLls.

On 9 SeptEmbEr 2010, The pSoE govERnment AppRovEd a laboR reform, WHicH iNCLUdEd suspension of collEcTIVe AgreemenTs duriNG eCoNOmic downTuRns, A lowER RedunDancY PaY in cases Of wronGFuL dIsmissaL—fRom 45 to 33 dAyS peR yeAr worKEd—or CheapeR dismissAls foR Companies facinG Losses, among otHErS. tHe REforM, coUpled with thE cut IN pubLic wAGeS anD The peNsion FrEEzE, Provoked the SocialisT gOvernmEnt to Face its first gEneral striKE ON 29 SeptembEr. In ORdER to tackle droppIng poLl numbers, a MAjor cabiNet reShuffle tOok place oN 20 oCtober, reSulTinG in A nuMBEr Of ministries bEINg diSbAnded anD MaRía TereSa FErnÁndEz dE lA Vega, who hAd served As zaPaTeRo's DeputY For most oF hIs tEnUre, Being REplaceD by inTeriOr MiNIstEr AlfreDO PÉREz RuBaLcAba. THe rIsK premIum kEPt gRowing aNd peaked aT 270 baSIs poInTs By the enD of November. ZaPaTero's goverNmEnt AnnounCED a new ausTerity package on 1 December—INcludinG thE remoVal oF a €426 allowanCe fOr long-TerM UnemplOyed anD the pRiVatIZAtionS OF AeNA AnD the LotterIES—buT also A tAx cuT for SMES. In the following weeKS, ZaPatero would alSo aNnouNCE aN inCReASe oF tHE reTIRement age from 65 to 67 To be applieD "fLExIbly and proGResSiVely" untIl 2027.

ParliAmentARy statuS
The CorteS GeneraleS wEre oFFIciAlly dissolVed on 27 SepTember 2011, aftER the pUBlIcatiOn oF the diSsOluTion dEcree iN The officIal StaTe gazettE. The tAbLes below Show the status of the diffeRent paRliamEntAry groups In bOTh cHambers at The tIme of dissoLutIon.


 the 100 basis point-markin a black  week  fo r M ad ridStoc k Exchange—wit h  the  IBEX 35 falling by 9. 3%. B ye arly Ma y 201 0, unem p lo y m ent  h ad  re ac h ed  the20%  mark f or the fir stti me since the 19 93 economi c c risis, while  th e cris is  in Greec e,threa tening to eng ulf the r em a ined o f  the eu r o zo ne,caused the risk p r em i um to rise dra matica ll y  b y 60%  to  170 basis  p oints and the Ma d r i d S t ock Exchangeto fall by1 0%.  As are sul t , Zapa teroan n oun ced a €15 b illi on auster ity pa c kage on 12 Mayaimedatpre vent i ng  t heco u ntr y 's  de f aul t. Among  t he  adop tedm e a s ures  we re a  cutof 5% in publ icwage s , a  pens ion f reez in g for  2011,  cuts  i nto dependencyspen ding andthe  r emo va l oft he €2, 500  bi rth all owance, amo ng o t he rs. Zapatero's U-t ur n ,  b reaching  a pre v io us pledge n ot  to  cut s ocial  spe n di ng, caus ed his an dthe PSO E' s popu la rit y r ating s  toplumme t in opi nionp olls.

On 9 Se p tember 2010,t he P SO E  gov ern ment approv ed a labo r re f or m,w hichinclu de d  s u spension of collect iv e agre ement s during econ omic downt u r n s, a low er r e du n dancy pay in c asesof wrongfu l  dismiss al—fr om 45 to  33 daysp e r year w ork ed— orche a p er  dismissals f o r  com pa nies fa cin g losse s,amo ngoth er s. The re form, co up le dwi ththe c u t in pub li c w ag esand t h e pens ion f reez e,  p r ovo ked the So c i alis tgo vern men tto fa ce i t s f irst ge neral str ike on 2 9Se ptember . In order to  t ackle drop pi ngpoll n u m bers, amajor cabinet reshuffle took pl ace  on 2 0 Oc tober, re sul ting i n a number  of mi nistr ie s b e i ng di s b an ded  a nd María T e r esa  Fern án dezde la V ega, who had serve d  as  Zapatero's d epu ty f o r  m ost of his  t e nur e ,  being replaced  by interi or mi nister Alf r edo  P érez Ru balcaba . The risk pr emium kep t growing  a nd p e a ked  at 270 ba sis poin ts by the end o f  N ovemb er.  Zapat er o's  gove rnment ann ounce d a ne wauster ity p ac kage on1 December—including th e remo val o f a  €426 all owa n cefor long- term  unemploye d a ndthe p riv a tizat ions of  AE N A and  the Lotteries — bu t a l s oa tax cut f o r SME s. In  th e  follo wing  weeks, Zapaterow ould also anno unce a n i ncr e aseof  the retiremen t a ge f rom 65 t o67 to be ap plied "f le x iblyand pr ogress ively"u n ti l  2027. 

Pa rli amentarysta tu s 
The Co rt es Genera leswe re off iciall y  dis s o lved on 27 Septe mber2 0 11, a f ter  thepu blicati o n of  the disso lution decr ee intheOffic ial Sta te  Gazet te.  T he tablesb elow show  thestatusof  the  di fferen t pa r l iamen tary  g rou ps in bot h ch a mb er s  at  the  time  o f di ssolution . 


 the_100 basis_point-mark in a black_week for_Madrid_Stock Exchange—with_the_IBEX 35 falling_by 9.3%. By_early May 2010, unemployment_had reached the_20%_mark for the first time since the 1993 economic crisis, while the crisis in_Greece,_threatening to_engulf_the_remained of the eurozone, caused_the risk premium to rise_dramatically by_60% to 170 basis points and the Madrid_Stock_Exchange to fall_by 10%. As a result, Zapatero announced a €15_billion austerity package on 12 May_aimed at preventing_the_country's_default. Among the adopted_measures were a cut of 5%_in public wages, a pension freezing_for 2011, cuts into dependency spending and_the removal of the €2,500 birth_allowance, among others. Zapatero's U-turn,_breaching a_previous pledge not to cut_social spending, caused_his and_the PSOE's popularity_ratings to plummet in opinion polls.

On_9 September 2010,_the PSOE government approved a labor_reform,_which included suspension_of_collective_agreements during_economic downturns, a_lower_redundancy pay_in_cases of wrongful dismissal—from 45 to_33_days per year worked—or cheaper dismissals for_companies facing losses, among_others._The reform, coupled with_the cut in public wages_and the pension freeze, provoked the_Socialist government_to face_its first general strike on 29 September. In order to tackle_dropping poll numbers, a major cabinet_reshuffle took place on_20 October,_resulting_in a number_of_ministries being_disbanded and María Teresa Fernández de la_Vega, who_had served as Zapatero's deputy for_most of his tenure,_being_replaced by interior minister Alfredo Pérez_Rubalcaba. The risk premium kept growing_and peaked at 270 basis_points_by_the end of November. Zapatero's_government announced a new austerity package_on 1 December—including_the removal of a €426 allowance for_long-term_unemployed and the privatizations of AENA_and_the Lotteries—but also a tax cut_for_SMEs._In the following weeks, Zapatero_would also announce an increase of_the retirement age from 65 to 67 to be_applied "flexibly and_progressively" until 2027.

Parliamentary status
The Cortes_Generales_were_officially dissolved on 27 September 2011, after the publication of_the dissolution_decree in the_Official State Gazette. The tables below show the status of_the different parliamentary groups in both chambers_at the time of dissolution.

