MARIANO Rajoy has warned Spain faces a third general election after talks with PSOE rival Pedro Sanchez broke down.
The PP’s acting Prime Minister pointed the finger at Socialist leader Sanchez for refusing to back his bid to become Spain’s new leader after June’s second inconclusive election in six months.
The PP leader, whose party won 137 seats in June’s vote, needs to strike a deal with other parties to reach an overall Congress majority of 176.
On Tuesday, the pair held their second meeting since King Felipe invited Rajoy to form a new government last month.
Sanchez admitted afterwards ‘I left more worried than when I arrived’.
Rajoy said: “If Sanchez keeps saying no, we will have another election.”
Meanwhile, Spain could be slapped with a €6.1 billion fine if its political parties fail to form a government.
The PP, the PSOE, Ciudadanos and Unidos Podemos are yet to agree on a pact following the June 26 election.
But with Spain’s government obliged to present the EU with its budget and spending plan by October 15, the country faces being hit with the sanction if if fails to deliver on time.
“This time the government has been able to avoid the fine, but next time in October it will be unavoidable,” a government source told El Mundo.
Under the EU agreement, Spain must reduce its deficit to 4.6% this year.