Far-Left Populists in Power: The Legacy of Podemos on Spanish Local Governments

Abstract

This paper investigates the impact of the far-left Spanish party Podemos on municipal governance, focusing on budgetary, economic, and social outcomes. Emerging from the 15-M Movement's protests against corruption and the economic crisis, Podemos disrupted Spain's traditional bipartisan system. Using a Regression Discontinuity Design based on the 5% electoral threshold for municipal representation, this study reveals that Podemos had limited effects on municipal budgets, and on socio-economic indicators. However, Podemos' presence was associated with increased political polarization, evidenced by higher vote shares for far-right parties in subsequent elections. This research enhances understanding of the consequences of political fragmentation on governance and social cohesion in Spain.