Spanish voters on Sunday delivered not one, but two striking novelties in the electoral history of the fourth-biggest economy of the European Union. For one, the two-party system was brought to an end; but the vote also delivered a hung parliament. The first outcome was widely expected, but the second certainly was not. The four main parties now must somehow find the common ground needed to form a government made up not of two, but three parties -- or else push for new elections.

Spanish politics was thrown into chaos on Sunday evening when results showed that neither the right-wing Partido Popular (PP) and liberal Ciudadanos, nor the new far-left Podemos party and the Socialists (PSOE) could form a two-party government based on holding a majority of seats in parliament. Both mainstream parties - PP and PSOE - lost big, and the new parties Podemos and Ciudadanos entered Parliament.

It was expected that the old two-party system, with power alternating between either the PP or the PSOE, would be buried on Sunday. The only question was which party the PP or the PSOE could turn to in order to form a government. Far-left newcomer Podemos had already ruled out governing with the conservative PP, while the reformist centrists of Ciudadanos made a point of fundamental reforms to the Spanish electoral system, requiring the Constitution to be amended. This is strongly opposed by the PP.

Confounding the political gridlock is that the Partido Popular seems to have held on to its absolute majority in the Senate. Amending the Constitution requires absolute majorities in both chambers of parliament, a prospect that seems highly unlikely.

Moderate revolutionaries Ciudadanos win, but also disappoint

Ciudadanos is a new party established in the Catalonia region in 2006. Ciudadanos positions itself as a reformist pro-business party at the political center, and polls in the months leading up to the election showed it would probably become the second party in the lower chamber of deputies in the Cortes, the Spanish Parliament, behind the incumbent Partido Popular. Yet that did not materialize. Instead, it came in fourth, below the PP, PSOE and left-wing Podemos.

Political analysts in Spanish media were quick to point out that Ciudadanos started shedding support in the polls after the party's leader showed willingness in the last days before the election to support a Partido Popular-led government. This seemed to contradict the party's earlier stance it took against the PP.

Podemos wins in the cities, PSOE holds on to rural areas

The party of charismatic Pablo Iglesias made strong gains in urban areas where the moderate socialists of the PSOE lost seats to its new, leftist rival. Podemos was born out of the nationwide movement opposing tough austerity policies levied upon Spain by its lenders following the economic crash of 2008-2009, when Spain's main banks were hit by the implosion of the country's housing market bubble. With unemployment among the young at record levels and voters in the cities hit hard by the economic downturn - and disappointed with the mainstream parties' inability to solve problems - Podemos quickly attracted a large share of the urban vote in many of the bigger cities with its promise of more government intervention in the economy.

Options

The election result offers the parties only a few options, none of which is attractive to the parties involved.

One would see the PP and the PSOE putting their age-old rivalry aside and forming a government of national unity - like for instance their sister parties in Germany, where the Christian-democrats of the CDU rule with the social-democratic SPD. This is however seen as highly unlikely. The chasm between the PP and PSOE runs deep in a country that was torn apart by civil war between left and right, and then ruled by Francisco Franco's fascist dictate until 1978, when democracy was restored in Spain.

Since Podemos has already ruled out governing with the PP, a three-way government of PP, Podemos, and Ciudadanos also seems out of the question.

That leaves the option of a three-way government comprising either PSOE, Podemos and Ciudadanos, or PSOE, Podemos, and a smaller party such as the Esquerra Republicana, a left-wing, separatist Catalonian party. The latter would attach a hefty price tag to any deal, demanding more autonomy for Catalonia. This is unpalatable to unionists in the PSOE.

Any three-way government without the PP would however lack a majority in the Senate. While the combination of PSOE, Podemos, and Ciudadanos would have a comfortable majority in the lower house, the Chamber of Deputies, any policy proposals toward fundamental change, such as amendments to the Constitution that are sought by Ciudadanos, would have a very hard time passing in the Senate.

Still, the lower chamber may overrule Senate votes on proposals that do not amend the Constitution, so a government could function. The question is whether Ciudadanos especially would be willing to swallow its ambitious designs to reform the Spanish political system.

Of course all this is based on the assumption that the PSOE, Podemos, and Ciudadanos would set aside some major differences and agree to cooperate, which is far from certain. Ciudadanos late on Sunday evening came out saying it would not support the leader of either the Partido Popular or the PSOE as prime minister, deepening the political crisis.

In the Spanish electoral system, the king appoints a party leader to take the lead in trying to form a government. The appointee must then gain the backing of a majority of votes in the Chamber of Deputies. There are two votes; the second is a confirmation vote, to be held 48 hours after the king's appointment. So the parties have two days at maximum to hash out a deal. If this fails, the king may appoint another party to have a go. Should the parties fail to reach an agreement after two months, parliament will be dissolved and new elections held.

Consequences for the European Union

The election's outcome is unlikely to alter much in the way Spain operates in the European Union. A clear majority of Spaniards supports remaining in the European Union, and of all four parties contending for a seat at the government table, only left-wing Podemos has ideas concerning European cooperation that clearly diverge from the mainstream.

(AP photo)