Spain’s caretaker leader, Mariano Rajoy, said on Saturday that the formation of a new government is “more of a wish” than a fact.
Rajoy is facing a vote of confidence on Wednesday in the country’s parliament to see if he will be given a second term in office. The matter could go to a second confidence vote, which will be held on Friday if Wednesday's ballot fails. In the second vote a simple majority will suffice to put Rajoy back in power.
Despite two inconclusive election results, first in December and then again in June, no coalition agreement has been reached by the squabbling political parties.
So far, Spain has been operating without a fully-functioning government for the last eight months.
The political stalemate has delayed investments in infrastructure such as roads, rail and buildings which is beginning to impact on the construction sector. Some high-ranking government appointments remain on hold, resulting in Spanish embassies in Belgium, India and Jamaica without an ambassador.
Nevertheless, the economic recovery has continued to gain traction, with the latest data showing strong growth fuelled by consumer spending and demand for exports.
Rajoy's center-right Popular Party (PP) was given the most votes in June's election but still without enough for a majority. The PP holds 137 seats, 39 short of a majority in the 350-seat parliament.
Even combining forces with centrists Ciudadanos (Citizens), Spain's fourth-biggest party with 32 seats, would fail to result in a majority. But no final agreement between the two has been reached.
The two other key players, the Socialists and Podemos, have both rejected coalition proposals.
Spain could well be heading for a third general election
If Rajoy's bid to become prime minister fails in the second vote, it will open a two-month period for another attempt at forming a government, after which a new election would automatically be called, the legal timing of which could well land it directly on Christmas Day.
"The formation of a government in Spain is today still more of a wish than a fact," Rajoy told a gathering of his supporters in the northwestern region of Galicia, a PP stronghold.
