PODEMOS have lifted their demand that the Socialist PSOE hold pact negotiations with either them or Ciudadanos.
Delegates from Pablo Iglesias’s party met last night with Pedro Sanchez’s PSOE, the IU and Compromis.
The left-wing parties held a five-hour meeting as they try to form a coalition ahead of Sanchez’s investiture session on March 2 and 3.
More talks are scheduled today with Podemos adamant any coalition should only involve left-wing parties.
PSOE spokesman Antonio Hernando said: “We have lost lots of time and it’s not our fault.
“We want agreement with all the main political forces.”
The delegates discussed the economy, Catalan separatism, social justice, the economic recovery and the broarder European political situation.
The combined number of Congress seats won by the four parties involved in yesterday’s discussions is 161, short of the 176 needed for an overall majority.
“With 161 seats we won’t get change,” said Hernando.
“We are going to keep talking with the PNV, with Coalicion Canaria, and Ciudadanos. We are going to keep talking to all parites.”
Spain has been without a government since the general election on December 20 when no party gained an overall majority.
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