Spanish monarch nears decision on formation of new govt

Spain’s acting Prime Minister Mariano Rajoy on Friday abandoned attempts to form a government due to lack of support in parliament, a statement issued by the royal palace said, a month after inconclusive elections.

The king was to meet Friday with incumbent conservative premier Mariano Rajoy, whose Popular Party won the most seats but fell short of a voting majority in Parliament, and with Socialist leader Pedro Sanchez, whose party came second.

Discussions on the next government with all groups with parliamentary representation would resume on Wednesday, the palace said in a statement.

Sanchez reiterated the socialists would vote against Rajoy and said they would try to reach a deal with Podemos and other smaller groups to obtain a majority of “progressive forces”. Rajoy called for a German-esque “grand coalition” of the PP, the Socialists (who came in second place winning 90 seats), and new center-right party Ciudadanos (Citizens) which snatched 40 seats.

If Sanchez fails to be voted in as prime minister, it is not clear yet whether Rajoy would try again or the parties would directly seek a new election within the following two months.

Pablo Iglesias told reporters he had informed King Felipe VI of “our desire to form a government of change with the Socialists and the United Left”. Iglesias suggested he could be deputy prime minister in a Sanchez-led government.

In December’s election, the Socialists, Podemos and Izquierda Unida won a combined 161 seats.

Such a combination remains uncertain but, after five days of talks between the King and political leaders, it still appears a better bet than Rajoy’s proposal.

Mas, who had presided over the regional government since 2010, said he was backing Puigdemont, as his successor. The United Left has two.

“We have chose to seize the initiative and take a step forward”, Iglesias said.

He did not say if he would leave the floor to the socialists or simply seek more time to secure his own alliance. “Either you’re for change or for stagnation and impasse”.

Rajoy’s popularity has plunged over the past four years in government chiefly because of party-linked corruption scandals, unpopular laws and austerity measures brought in to help get Spain out of a severe economic crisis.

The December election produced Spain’s most fragmented Parliament in decades and ended the alternating grip on power the Popular Party and Socialists have had. The strong emergence of Podemos and Ciudadanos was interpreted as a sign that Spaniards wanted change.