Spanish banks posted some of the biggest losses in European trading on Monday after the country’s ruling party lost its parliamentary majority in Sunday’s election, sparking fears of Greek-style negotiations to form a coalition government.
Prime Minister Mariano Rajoy’s Popular Party won most of the votes and scored 123 seats in parliament, but that’s not enough to rule on its own.
Far-left Podemos won 69 seats and upstart party Ciudadanos won 40.
The splintered vote fueled concerns of a government so fragmented it will struggle to push through with reforms to continue Spain’s economic recovery after the financial crisis.