France 24 on Monday reported that Spanish Prime Minister Mariano Rajoy faces a struggle to form a government following historic elections that saw the incumbent conservatives score a win but no majority, tailed by the long-established Socialists. For more than 30 years, the Popular Party (PP) and Socialists had alternated power. But they now find themselves challenged by far-left Podemos and Ciudadanos, a centrist party that came fourth in Sunday’s closely fought legislative polls.Rajoy’s PP lost its absolute majority in parliament by a significant margin and will now have to form an alliance with other parties to govern or attempt to rule as a minority government.REVIEWThe austerity programmes proposed by the conservative government is no longer acceptable to the people. Hence many are turning to far left parties which are calling for better welfare programmes. The basic problem is how to come up with realistic economic policies which would make the enhancement of welfare possible. The challenge is how to create sovereign national wealth. All political parties that promise general welfare should be asked to explain how they would finance it. This would differentiate true servants of the people who have answers to their problems from demagogues.It is not for a political party to be leftist or anti-capitalist. It must have realistic policies to address the needs and aspirations of the people.