Spain’s Socialists, Podemos sign pact on ‘progressive’ coalition govt
13 November, 2019, 16:29
Pablo Iglesias, leader of Podemos has asked the left-wing parties to unite together and form a government as he is willing to negotiate terms and conditions with Sanchez.
"An agreement has been reached for a coalition government between Unidas Podemos and the Socialists", Garzon said in a tweet.
The country's current Prime Minister also said: "The Spanish people have spoken and now it is time for its political leaders to implement that will and to overcome the deadlock that Spain has suffered in recent times".
If they succeed, it would be Spain's first coalition government since the country's return to democracy in the late 1970s.
The two leaders have said that the coalition will form a "progressive government made up of progressive forces that are going to work for progress".
The preliminary agreement, which is based on the "loyalty" of both parties to "form a stable government for four years", was signed in the Spanish Congress building in Madrid just two days after Sunday's general election.
When Spain held elections in April, Podemos and the Socialists won more seats than they did on Sunday.
Mr Iglesias said: "As I said on election night after hearing the results, what was a historical opportunity in April has become a historical necessity".
Possible parties to make up the shortfall could be the leftist Mas Pais and the Basque nationalist PNV, speculated El Diario newspaper.
Both the Socialists and Podemos lost seats compared to the April election, with Sanchez's party taking 120 seats, down from 123, while Podemos secured 35, down from 42.
"Given the collapse in support for Ciudadanos, whose share of seats fell dramatically from 57 to 10, we believe the party wants to avoid another election and being seen as blocking the formation of a government", the Economist Intelligence Unit (EIU) said. The two leaders said details would come later and did not comment further.
However, the party would have to actively support the government, rather than abstain, given the likelihood that Catalan pro-independence parties would vote against a Socialist-led government.
Spain's Ibex-35 index slipped by around 0.76 percent at 16:00 GMT, having previously traded 0.3 percent higher on the day.
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