DO NOT PUBLISH Spain Socialists Fail to Form Government, New Elections Imminent

The leader of Spain's Socialists failed Friday to win the confidence of parliament to become prime minister, opening a new round of talks between parties who now have just two months to avoid a fresh election.

In a first for Spain, Pedro Sanchez lost his second investiture vote, securing the support of only 131 members of the 350-strong assembly for his proposed coalition.

As on Wednesday when Sanchez lost a first vote, acting Prime Minister Mariano Rajoy's conservative People's Party (PP), anti-austerity upstart Podemos and five smaller parties voted against Sanchez, scuppering his pact with business-friendly Ciudadanos.

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Until the last minute the Socialist leader tried to woo Podemos into joining his "government of change" but the party's leader Pablo Iglesias held out for an alliance solely between leftist parties.

"I will continue working to achieve the majority this country needs," Sanchez told reporters after the vote. "Pablo Iglesias has betrayed his party's voters and he is responsible for Rajoy remaining as prime minister."

Iglesias before the vote compared his dispute with the Socialists to a quarrel between lovers and said Sanchez should embrace the other "monstrous" leftist parties which would be needed to reach the parliamentary majority of 176 seats.

A coalition between the Socialists and Podemos would have to depend on former communists Izquierda Unida and four regional parties from the Basque Country and Catalonia, all of which voted against Sanchez on Friday.

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"I again offer you my hand Mr. Sanchez, and after tonight we will be able to get to work," Iglesias, who came third in the December general election

Spain's parties have been in fruitless negotiations to form a government since a December vote when Spaniards weary of austerity and corruption deserted the two traditional parties to vote for newcomers.

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