Sanchez Says Mutual Mistrust Stands in Way of Spanish Government

(Bloomberg) -- Acting Spanish Prime Minister Pedro Sanchez said a lack of trust persists between his Socialists and the anti-austerity party Podemos, whose backing he’ll likely need to avoid sending voters to the polls for a fourth time in as many years.

“This mistrust is reciprocal,” Sanchez said at a news conference in Mallorca, where he attended a meeting with King Felipe VI. He said he would strive until the last minute to forge political pacts that would save Spain from having to hold a repeat ballot.

Sanchez lost twin votes in parliament last month that would have enabled him to form a new government after the Socialists emerged as the biggest party in April elections. He failed to win parliamentary endorsement to stay on as prime minister because talks with Podemos over the division of powers in a possible coalition broke down.

Sanchez, who said he briefed the king on the ongoing political impasse, pledged to explore other solutions, such as winning support for a government policy program that wouldn’t require the formation of a formal coalition.

“We want to create the basis for an open program for a progressive common proposal,” Sanchez said.

The clock is now ticking for Sanchez to line up support for a government program by Sept. 23. If he fails, new elections will be called for early November.

--With assistance from Thomas Gualtieri.

To contact the reporter on this story: Charles Penty in Madrid at cpenty@bloomberg.net

To contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net, Richard Bravo, Iain Rogers

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