In what experts are declaring a new era in Spanish politics, the ruling Popular Party on Sunday won 123 out of 350 seats in the general elections, and will now need to form a coalition government. The other major party, the Socialists came in second with 90 seats. The anti-austerity Podemos won 69 seats, while the centrist-liberal Ciudadanos got 40.

This was the first time Podemos and Ciudadanos fielded national candidates, banking on an electorate that was unhappy about several issues in the country – the state of the economy, corruption and a separatist movement in the prosperous north-eastern region of Catalonia, the BBC reported. Rajoy’s party enforced severe austerity measures that were unpopular, but boosted the languishing economy. However, Spain continues to have the second-highest unemployment rate in the European Union.

Pablo Iglesias, chief of the Podemos, said this was the birth of “a new Spain” and the death of decades of two-party politics, The Guardian reported. Analysts said it might be difficult for the Popular Party to form a government, as teaming up with their natural allies Ciudadanos will still not give them a majority. On the other hand, the Socialists might make a pact with Podemos and Cuidadanos.