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Spanish Prime Minister Pedro Sanchez called for a surprise July 23 snap election on Monday shortly after left-wing ruling Socialist Workers' Party PSOE suffered a heavy loss in Sunday's regional and local elections against its conservative rival People’s Party PP.

The PP led the race with 7.43 million votes, surpassing the socialist party by almost 3.4 percentage points. The results were widely viewed as a rehearsal for a general election scheduled at the end of the year.

Spaniards across the country voted for mayors in 8,131 municipalities, while also electing leaders and assemblies in 12 of Spain's 17 regions. 

The PSOE was only able to secure three regions it used to govern, as per Europa Press agency.

Sanchez announced in a televised speech that he had notified King Felipe VI of his intention to dissolve parliament and "call a general election" on July 23.

"I have taken this decision in light of the results of yesterday's elections," he said.

"As the head of the government and of the Socialist party, I take responsibility for the results and I think it is necessary to respond and submit our democratic mandate to the popular will," he added.

The elections will take place immediately after Spain assumes the rotating chair of the European Union on July 1.

Sanchez has faced numerous challenges since taking office in 2018: voter dissatisfaction with his left-wing administration, skyrocketing inflation, and dwindling buying power in the eurozone's fourth-largest economy.

He has had to deal with the impact of periodic squabbles between the Socialists and their hard-left coalition partner Podemos. 

The PP secured just over seven million votes (31.52 percent) in the municipal elections, in comparison with nearly 6.3 million for the Socialists (28.11 percent).

The numbers represent a big setback for Sanchez, whose Socialist party leads the eurozone's fourth-largest economy in partnership with the far-left Podemos party. 

"We have won a clear victory and Spain has taken the first steps towards a new political era," said the opposition leader Alberto Nunez Feijoo, head of the right-wing Popular Party (PP) in a victory speech early on Monday.

However, the PP will be able to rule in numerous regions only with the help of the far-right Vox, which was also a winner in Sunday's polls, posing a big dilemma for Feijoo. 

Vox, the third-largest party in parliament, aspires to be a vital partner for the PP, both regionally and, ultimately, nationally.

Recognizing that conquering the center is critical to winning the general election, Feijoo has attempted to modify the PP's position while keeping Vox at bay.

In Madrid, the PP was enjoying a double victory, with its hardline regional leader Isabel Diaz Ayuso securing an absolute majority, which means she will no longer have to rely on Vox for support. 

Jose Luis Martinez-Almeida, the PP mayor of the capital, was also re-elected with an absolute majority. 

It is worth noting that 35.5 million voters were eligible to cast ballots in the local elections, and 18.3 million were eligible to vote in the regional elections.

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