Spain’s socialist prime minister, José Luis Rodríguez Zapatero, won a convincing general election victory on Sunday night after a campaign thrown into turmoil at the last minute by the killing of a politician, blamed on Basque separatists Eta.

Speaking to ecstatic supporters at the socialist party’s headquarters in central Madrid last night, Zapatero first paid tribute to Isaias Carrasco, the former socialist town councillor who was shot dead two days before the elections. He went on to thank the “voters who have given a clear victory to the Socialist party”, after a polling day that saw a turnout of over 75 per cent.

“The Spanish people have spoken clearly and decided to start a new era,” he said, adding that he had received a phone call from his defeated opponent, Mariano Rajoy, congratulating him on his victory.

“I will govern for all, but thinking, before anyone else, of those who don't have it all,” he said, before signing off with his much-mocked campaign slogan, “Good night, and good luck”, taken from the George Clooney film of the same name.

After a bitter and divisive campaign dominated by fears over a stumbling economy and rising immigration, Zapatero fell short of the absolute majority that he had been hoping for. Socialist party officials will now be forced to negotiate with smaller regional parties in order to form a government.

Social reformist

The victory was an endorsement of Zapatero’s record in his first term, which saw the withdrawal of troops from Iraq, the introduction of social reforms, including the legalisation of gay marriage, and the cession of more power to Spain's semi-autonomous regions.

In the next four years, Zapatero plans to extend his social reforms, pledging to create 2 million jobs, to increase the minimum wage and maternity leave and to spend heavily on a high-speed train network. The socialists want to introduce stronger anti-discrimination legislation, and promise a string of green laws.

The biggest challenge facing Zapatero is the downturn that has hit a once-booming economy. The wheels have started to come off after 10 years of spectacular growth that saw the creation of new wealth and 600,000 jobs a year.

Zapatero has to overcome rising unemployment, inflation at double the EU average, and a crisis in the construction industry, which has been hit by the global credit squeeze. Having seen the economy grow at a rate of 4 per cent in recent years, analysts say it could drop to 2.5 per cent this year.