Spain set for new left coalition govt

Spain's acting Prime Minister Pedro Sanchez (L) and Podemos leader Pablo Iglesias have made a deal.
Spain's acting Prime Minister Pedro Sanchez (L) and Podemos leader Pablo Iglesias have made a deal.

The Spanish socialist PSOE party of acting Prime Minister Pedro Sanchez and the leftist Unidas Podemos have struck a deal to form a coalition government, raising the prospect of an end to the country's political paralysis.

Sanchez said the government would stay in place for the entire four-year parliamentary term.

He made a joint appearance on Tuesday with Unidas Podemos leader Pablo Iglesias in which the two men shook hands, hugged, smiled, and signed a document.

The deal follows Sunday's general election and comes after months of acrimony between the two leaders and their respective parties.

PSOE and Unidas Podemos tried and failed to strike a coalition agreement after a previous general election in April.

The PSOE won Sunday's national vote but lost seats compared to April and remained short of a parliamentary majority.

Unidas Podemos also had a poor result. It was Spain's fourth inconclusive general election in four years.

Australian Associated Press