Sanchez Signals He Has a Card Up His Sleeve to Break Spanish Deadlock

(Bloomberg) -- Spain’s acting Prime Minister Pedro Sanchez has pledged to take measures toward ending long-standing political stalemate and forming a government following next month’s parliamentary election.

“Next Sunday I am going to announce a plan to overcome the blockade and move forward that will consist firstly in that there will be a government in December,” Sanchez said in an interview with broadcaster Telecinco Wednesday.

Sanchez didn’t say what his proposal would focus on but the prospect of a solution by December may help restore confidence in a country battered by uncertainty. Spaniards go to the polls on Nov. 10 for the fourth time in four years, with polls continuing to signal no straightforward path to the formation of a government. Disputes over corruption and how to manage a drive for separatism in Catalonia have helped splinter voter support.

Speaking in Madrid on Wednesday, Antonio Garamendi, the chairman of the Spanish business lobby CEOE, said he was more optimistic about a government being formed as parties signal more willingness to negotiate. Ciudadanos, a center-right party that has so far refused to talk to the Socialists, signaled last weekend it was prepared to talk.

Sanchez again said his party is the only one in a position to govern and that other parties should allow that to happen. He said that was the case in Portugal where the Socialists fell short of a majority, but will likely remain in power.

Sanchez’s plan to form a government could come in the aftermath of verdicts delivered in the trial of Catalan separatist leaders who tried to split the region from Spain in 2017. The government is bracing for protests if the Supreme court returns guilty sentences.
The verdict is expected in coming days.

--With assistance from Charlie Devereux.

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, Raymond Colitt

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