Mass protests in Spain that challenged the long-standing two-party system and austerity policies associated with both major parties (PP and PSOE) were followed by the emergence of challenger party Podemos. In the current conjuncture, however, Podemos faces an existential crisis. Supported by data gathered during interviews with key figures from Podemos, leftist parties and activists, this article disentangles why and how the outsider-to-insider party-building process culminated in a de-legitimized Podemos. The article argues that the electoral strategy of Podemos leaders in conjunction with opposition pressures encouraged a moderation of the party’s brand. To pursue such moderation required insulating the leadership clique from radical voices via degenerative factionalism and oligarchization processes. Moreover, weak popular sector organizations were unable to counter the moderation–factionalism–oligarchization process. The culmination of the party-building process saw a Podemos that lacked a coherent brand or any societal connections, leaving it vulnerable to replacement by a new challenger.
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