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Spain rivals weigh coalition options in post-election talks Spain Socialists reject Rajoy or PP-led government
(about 3 hours later)
Spanish Prime Minister Mariano Rajoy is meeting Socialist leader Pedro Sanchez for exploratory talks on forming a coalition government. Spanish Socialist leader Pedro Sanchez has said he will not support a government led by acting Prime Minister Mariano Rajoy or his conservative Popular Party (PP).
The new liberal Ciudadanos (Citizens) party, which came fourth in Sunday's election, now wants a "pact" with them. After a brief meeting with the prime minister, Mr Sanchez insisted Spain needed a change of government.
Ciudadanos leader Albert Rivera said they would exclude left-wing Podemos, "which wants to break Spain up". "No to Rajoy means yes to change," he said, adding that he did not want fresh elections.
The Popular Party won Sunday's vote but fell well short of securing a majority.
For decades the Socialists and PP have alternated in government but the rise of two new parties, the left-wing Podemos (We Can) and liberal Ciudadanos (Citizens), has left Spanish politics fragmented.
The PP picked up 123 seats - far short of the 176 minimum needed to govern alone - while the Socialists (PSOE) won 90 seats, Podemos 69 and Citizens 40.
Shortly before Mr Sanchez went into his meeting with the acting prime minister at Madrid's Moncloa Palace, Ciudadanos leader Albert Rivera called for a pact between the three parties.
He said they would exclude Podemos, "which wants to break Spain up".
Podemos, unlike the others, backs the Catalan nationalists' call for a referendum on independence from Spain.Podemos, unlike the others, backs the Catalan nationalists' call for a referendum on independence from Spain.
Spain is braced for weeks of tough negotiations, after the election left the country's politics fragmented, with the two new parties - Ciudadanos and Podemos (meaning "we can") - making a big impact. Mr Rajoy is also firmly opposed to any Catalan referendum on independence, while the Socialists say they are prepared to discuss constitutional reform.
Mr Rajoy's conservative Popular Party (PP) got 123 seats - far short of the 176 minimum needed to govern alone.
For decades the Socialists (PSOE) and PP alternated in government.
The Rajoy-Sanchez talks got under way at government headquarters, Madrid's Moncloa Palace.
The PSOE got 90 seats - its worst result in recent history - while Podemos got 69 and Ciudadanos 40.
The PSOE is against Mr Rajoy leading Spain's next government. The PP's result was its worst since 1989.
Mr Rajoy insists that any coalition partner must work for the unity of Spain. He is firmly opposed to any Catalan referendum on independence.
Influential deputyInfluential deputy
Mr Rajoy's deputy, 44-year-old Soraya Saenz de Santamaria, has emerged as a powerful figure, and appeared on the PP's campaign posters. Mr Rajoy did not comment publicly after the talks, which were the first to take place since the 20 December election and were described as barely 40 minutes in length.
She took part in the first two election debates on TV, after Mr Rajoy decided not to take part. Some see her as a potential replacement for him as PP leader. But the Socialist leader was clear: "The PSOE will not support the continuity of Rajoy and the PP because the people voted for change."
Mr Rajoy's deputy, 44-year-old Soraya Saenz de Santamaria, has emerged as a powerful figure in the PP but Mr Sanchez's remarks appeared to rule out any compromise involving her becoming prime minister.
Ms Saenz de Santamaria took part in the first two election debates on TV, after Mr Rajoy decided not to take part.
When Spain's parliament reconvenes in January, King Felipe VI will ask a party leader to form a government and MPs will vote on his nomination.
If they fail to elect a government within two months then fresh elections will follow.
The election result on Sunday was seen as a rejection of traditional Spanish politics, dominated by the PP and PSOE since the nationalist dictator Francisco Franco died in 1975.
The PP's vote took a battering because of a party funding scandal and widespread anger over economic austerity. Spain's 21% unemployment rate remains one of the highest in Europe, and inequality grew after the financial crisis.The PP's vote took a battering because of a party funding scandal and widespread anger over economic austerity. Spain's 21% unemployment rate remains one of the highest in Europe, and inequality grew after the financial crisis.
The election result was seen as a rejection of traditional Spanish politics, dominated by the PP and PSOE since the nationalist dictator Francisco Franco died in 1975.
There is speculation that a left-wing coalition government could be formed - along the lines of neighbouring Portugal. But there are serious divisions between the PSOE and Podemos - and together they would still be short of a majority. They might have to woo small leftist parties in the Basque Country and Catalonia.There is speculation that a left-wing coalition government could be formed - along the lines of neighbouring Portugal. But there are serious divisions between the PSOE and Podemos - and together they would still be short of a majority. They might have to woo small leftist parties in the Basque Country and Catalonia.
Doing the post-election sums:Doing the post-election sums: