Spain has edged much closer to having a third general election as caretaker PM Mariano Rajoy lost the second vote of confidence on Friday evening in the Spanish parliament.
Parliament once again refused to accept Rajoy’s bid to form a government and serve a second term, despite the country having had eight months of political paralysis on the back of two inconclusive election results.
The second parliamentary investiture debate in a week brought in 180 votes against and 170 in favour. The result was exactly the same as it had been in the first confidence vote on Wednesday.
Political leaders now have two months to broker a new deal. If this fails, the king will have to dissolve parliament and call a fresh election, slated for 25 December.
Socialist leader Pedro Sánchez has refused steadfastly to give his party’s support to Rajoy’s Popular Party or to facilitate its formation of a minority government.
Even the New York Times in an editorial on Friday urged the Socialists to abstain from voting in order to let the PP win, arguing "there is little chance they would improve their position in December."
"The alternative, however, is four more months of interim government, which means no budgets, no new ministers and most likely no legislation," it wrote.
Sánchez holds that “forces of change” could find an alternative alliance to end the political deadlock. He had previously told parliamentarians that Rajoy has “no credibility” because of the many allegations of illegal financing and fraud which have swirling around the PP during Rajoy’s first term.
Spain has never had a coalition government since it returned to democracy following the 1975 death of longtime dictator Francisco Franco. Now with four main political parties instead of the traditional two major rivals, none have been able to agree on a ruling alliance.
Without a fully-functioning government it will be difficult for Spain to submit a 2017 budget, with sufficient cuts to reduce its deficit by 3.1% next year, by the EU’s October 15 deadline. A caretaker government can only roll over its spending plan for 2016.