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World

Spain fails again to form a government

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World

Spain fails again to form a government

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COMING UP:Spain fails again to form a government

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Transcript

00:00:01
>> Spain's acting Prime Minister and his political foe meet again to try to break a seven month political deadlock. But the socialists once more saying they would vote against a conservative led administration in a vote of confidence. And PM Rajoy of the People's Party concluding a third election might be necessary.
00:00:20
Two inconclusive national elections in December and June, they're staying with a hung Parliament.>> We thought that, at this stage, we might see some signs that the Socialist, for example, the second place party in Spain were ready to make some concessions further down the line to enable some form of government.
00:00:39
And in fact, today, what we've seen is parties locking horns once again, reiterating their positions. So in fact, that's just showcased their deep divisions.>> Spain's caretaker, Prime Minister Mariano Rajoy has accepted a mandate from the king to form a government. But without at least an abstention from his rivals, the conservatives will struggle to get a majority.
00:01:02
On top of that, a deadline is looming. Spain must present its 2017 budget to Brussels by mid October.>> The economy has resisted quite well in the face of all this political instability. That being said, Brussels has been scrutinizing Spain's budget a lot because they missed their deficit target last year.
00:01:24
If they don't manage to present, a budget by mid October, it doesn't put Spain in a good light. So that could be something that might start to worry international investors and markets which until now have been quite calm about the Spanish situation.>> Some think the socialists party could eventually abstain in a parliamentary confidence vote.
00:01:44
Then Rajoy's PP could form a minority government, but no sign of that happening yet. The country is a way off beating Belgium's record of 589 days without a government, but Spain's political parties are certainly heading in that direction.