MADRID (BLOOMBERG) - Spain's leading left-wing parties announced an agreement to form a coalition in a bid to break the country's political deadlock.
"We have reached an agreement to form a coalition government between Unidas Podemos and PSOE," Mr Alberto Garzon, the leader of Podemos ally Izquierda Unida, said in a verified tweet on Tuesday (Nov 12).
Acting Prime Minister Pedro Sanchez, of the Socialist party, and Mr Pablo Iglesias, head of the anti-establishment force Unidas Podemos, signed an agreement on Tuesday to form a coalition to govern Spain in the Parliament in Madrid.
"The government needs to start moving as soon as possible," Mr Sanchez said. "There was no justification for continuing the gridlock."
The agreement, announced two days after Spain's general election, marks an attempt to end a political deadlock that has forced Spaniards to go to the polls four times in as many years.
The agreement draws a line under months of squabbling between the two leaders, whose failure to agree on a coalition over the summer tipped the country into new elections.
The Socialist-Podemos pact will not guarantee the formation of a government by itself. With a combined 155 seats in Parliament, they will still need the support of smaller or regional parties to form an administration. An absolute parliamentary majority requires 176 votes.
Mr Sanchez said he will start talks immediately to secure the additional support he needs.
"I'm satisfied to announce that we have reached a pre-agreement to form a progressive government in Spain, a government that combines the experience of the Socialists and the courage of Unidas Podemos," Mr Iglesias said after signing the agreement. "Pedro Sanchez knows he can count on our loyalty."
The two parties agreed to focus the coalition on 10 points, ranging from the fight against corruption and climate change to control of spending.
The agreement also addresses the Catalan political crisis, stating that the coalition will seek "the normalisation of political life" in Catalonia.
The parties said details of the agreement will be made public in the next few weeks.
Catalonia had been a key friction point in the parties previous attempt to form a coalition over the summer. At the time, Sanchez had said he could not trust that Podemos would support his policies on the region. Mas Pais, a group which split off from Podemos and won three seats in Sunday's election, will support the coalition, party leader Inigo Errejon said in a tweet.
