By Julien Toyer and Blanca Rodríguez
MADRID (Reuters) - The leader of Spain's Socialists on Tuesday offered to lead talks between parties to form a government in a bid to break political deadlock and avoid a new national election in the next few months.
Pedro Sanchez made the announcement after a meeting with King Felipe, who will meet acting-prime minister Mariano Rajoy at 1600 GMT, wrapping up a second round of negotiations that started last week.
It is not clear which man the king will nominate to lead talks to form a new administration or whether he will instead ask the parties to negotiate before he picks either.
Spain has been without a government since inconclusive parliamentary elections on Dec. 20, and talks to resolve the situation have made little headway so far.
"The socialist party and myself have told the king that we are ready ... to take a step forward and try to form a government to end the stalemate of the Spanish democracy and its institutions," Sanchez told a news conference.
"Spain cannot afford to wait," he said.
Sanchez said he would open talks with all parties - including Rajoy's People's Party (PP) - if appointed by the king, although he would not actively seek the backing of parties that favour Catalonia's independence from Spain.
Rajoy was nominated after a first round of talks last month because his conservative PP won most votes in the election.
But he deferred a parliamentary confidence vote on a new government because he lacked the support to win it, and the PP has been lobbying for Sanchez to take the baton this time.
Having ruled out a coalition with the PP and with senior members of his party opposing a deal with anti-austerity Podemos and regional parties, the socialist leader's chances of success look just as slim however.
The Socialists could potentially achieve a majority by teaming up with Podemos and other leftist and regional parties, but they have different views on fundamental issues such as whether to organise an independence referendum in Catalonia.
Meanwhile, Rajoy's PP, which fell well short of a majority in December, would need the unlikely backing - or the abstention - of newcomer centrist party Ciudadanos and the Socialists in order to win a second term in power.
Both the PP and Podemos have said they would vote against a possible third option, a minority government formed by the Socialists and Ciudadanos.
Under Spain's constitution, a two-month deadline for the formation of a government comes into effect once a candidate seeks a parliamentary confidence vote.
If that deadline expires a new national election is called.
With the country's economic recovery still showing strong momentum and politicians facing little or no pressure from financial markets and business leaders to end the stalemate, few would now bet heavily against that outcome.
(Additional reporting by Marta Ruiz-Castillo; Editing by Louise Ireland)
