Pedro Sanchez resigns as leader of Spain's Socialist party read more at here www.spinonews.com/index.php/item/1108-pedro-sanchez-resigns-as-leader-of-spain-s-socialist-party

Pedro Sanchez has resigned as leader of Spain’s Socialist party after losing a vote triggered by a party revolt.

The departure of Sanchez, who became leader in 2014 and has presided over a slump in party support, means the Socialists can now try to find ways to avoid a third election, such as abstaining in a confidence vote to allow Rajoy a second term.

Rajoy, whose Popular Party (PP) won both elections though without enough seats to rule alone, has been forced into negotiating a minority government which was voted down by lawmakers in a vote of confidence earlier this month.

His resignation, which he announced shortly after, could see the party lift its veto on a new government led by acting conservative Prime Minister Mariano Rajoy.

Emerging from a tense, daylong meeting at party headquarters in Madrid, Pedro Sanchez announced his resignation after the party’s Federal Committee voted 132-107 against his plan to hold a leadership election later this month. Mr. Sanchez had proposed the election, by party members nationwide, to renew his mandate and endorse his proposal to try to win parliament’s approval of a Socialist-led leftist coalition government.

Spain's parliament now has until the end of October to form a new government led by the Popular Party. If that fails, Spanish voters will be confronted with their third national election in a year. A general vote will be planned for December of this year if a coalition doesn't take root. 

Spain's parliament has until October 31 to produce a government or new elections will be called in December -- the third in a year.