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The new government have little room to maneuver economically as they have agreed to carry over the existing PP budget for the next year as well as to respect the European Union’s fiscal rules. It is also highly unlikely they can repeal the PP’s labor reforms as this would require the support of right-wing regional nationalists. And so in terms of improving the material conditions of the working class, it will be complicated to pass any substantive measures.
In reality Sánchez is a social liberal, a descendant of Tony Blair and Gerhard Schoeder’s Third Way. He did win back the PSOE leadership [after a palace coup against him eighteen months ago] by appealing to the desire of his party’s members for a more left-wing line, but he never really believed in it himself. He should not be underestimated politically. He is extremely ambitious and determined but is more like a Macron or Albert Rivera — an empty vessel onto which you can project various ideological elements.

At the same time Rajoy’s seven years in office has been marked by a real regression in terms of civil rights and I think Sánchez’s government can make progress here, for example repealing much of Spain’s gag laws. There will also be advances on questions thrown up by Spain’s growing feminist movement and further implementation of Spain’s historical memory law. It was the Basque and Catalans who suffered most under Franco and so they will back measures in this area. Ultimately, PSOE’s objective is to create an account of its two years in office with which it can win the next elections: demonstrating a more caring, democratic politics, being able to point to cultural victories against the Right and a reduction in tensions on territorial issues."

Once the elections have been won, PSOE's Sanchez will implement further neoliberal measures. 

"There has been a certain process of “bourgeoisification” of all these new forces. This always happens to a greater or lesser extent when you enter the institutions which have their own rules and ways of doing politics. What started as something at least politically revolutionary has become institutionalized as a new multi-party system. There are parties like Podemos to the left of PSOE and Ciudadanos, which for me, is to the right of the PP. Even while Spanish society is becoming less ideological, in the parliament this new party system is in fact reinforcing the old left-right dynamic"

The Lesser Evil
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