Spain risks new ballot with PM's veto on left-wing coalition

Socialist leader Pedro Sánchez is proposing policies including pension hikes and rent controls in a bid to win parliamentary support for a new term as prime minister, but seems likely to face a new election as he rules out a coalition with an important far-left ally.

The caretaker prime minister needs the parliamentary votes of the anti-austerity Podemos (We Can) to stay in office, but its leaders say Sánchez needs to include them in his new cabinet.

With both sides’ positions deeply entrenched, Spain faces a new election in November if the deadlock isn’t resolved by a Sept. 23 deadline.

Speaking to party members on Tuesday, Sánchez said that Spain needs a united and strong government to face economic upheaval ahead and to stop Catalan separatism, among other challenges.