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Spain’s Left-Wing Pact Uncertain as Sanchez Clashes With Podemos

Sanchez Makes Plea in Parliament for Fresh Chance to Lead Spain

(Bloomberg) -- Pedro Sanchez goes into a first vote in Spain’s parliament on Tuesday still unable to rely on the support of his potential partners Podemos for his bid to form a left-wing coalition government.

Pablo Iglesias, Podemos’s leader, used a speech in parliament on Monday evening to tell Sanchez his group would never accept being “mere decoration” in an administration led by the Socialists. Sanchez, Spain’s acting prime minister, said it was clear that differences remained between the two sides but he would seek to keep pushing negotiations forward. If talks do break down, Podemos should still commit to backing a Socialist-led government, he said.

“A hand is held out to you, but I insist, if we don’t reach this agreement, I ask you to think about your vote,” Sanchez said.

Spain’s Left-Wing Pact Uncertain as Sanchez Clashes With Podemos

In general elections in April, Sanchez’s Socialists emerged as the biggest party in parliament but well short of a overall majority, leaving him to negotiate with Podemos and other groups to attempt to form a government. Winning the confidence of parliament would avert the need for Sanchez to call new elections after a period of political upheaval that’s already forced Spaniards to the polls three times in the past four years.

A first vote on Sanchez’s attempt to form a government goes ahead Tuesday with him needing an absolute majority of the 350-seat chamber to succeed.

If that fails -- and the parliamentary arithmetic suggests it will -- Sanchez gets a second shot Thursday where he will need a simple majority. If Podemos fails to support him, Spain may be on track to hold new elections in November.

Spain’s Left-Wing Pact Uncertain as Sanchez Clashes With Podemos

Sanchez achieved a potential breakthrough on July 19 when Iglesias bowed to Sanchez’s demand to give up his insistence on taking a senior role in his cabinet.

The two parties spent the weekend negotiating terms of what could be the first coalition government since Spain wrote its democratic constitution in 1978. Even with the support of Podemos, Sanchez’s investiture is not certain. He still needs the support of other lawmakers -- potential allies include the Basque Nationalist Party and the Catalan separatists of Esquerra Republicana de Catalunya.

Sanchez’s speech was full of gestures to the forces on Spain’s political left, led by Podemos, whom he needs to join him in government. He stressed the need to protect pensions, labor rights and the environment and take action to stem “abusive” increases in rental costs.

He pledged to take action to tackle problems of rural depopulation, safeguard the rights of women and stamp out gender-based violence. He said the number of unemployed Spaniards would fall below 3 million in June for the first time since 2008.

But in tense exchanges, Iglesias criticized Sanchez for still seeking the abstention of conservative parties to get through the voting process. That showed he wasn’t serious about forging a left-wing alliance and was only speaking to Podemos because he had no other option, Iglesias said. He said he his party was talking to the Socialists because it wants to take action against unfair taxation, job insecurity and high power and rental bills.

“We are a modest and young political force but we’re not going to be trodden down by anyone,” Iglesias said.

--With assistance from Thomas Gualtieri and Andrew Blackman.

To contact the reporter on this story: Rodrigo Orihuela in Madrid at rorihuela@bloomberg.net

To contact the editors responsible for this story: Charles Penty at cpenty@bloomberg.net, Raymond Colitt

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