Spain's Sanchez faces tight vote to remain PM

Spain's parliament will vote Tuesday on whether to confirm Socialist leader Pedro Sanchez as prime minister at the helm of the country's first-ever coalition government.

Sanchez, caretaker premier since inconclusive elections last year, is seeking another term but this time in a minority coalition government with hard-left party Podemos.

He lost a first confidence vote Sunday having failed to win backing from an absolute majority in the 350-seat parliament.

For Tuesday's second vote he needs just a simple majority to remain prime minister.

While the math works in his favour after the Socialists struck a deal last week with the 13 lawmakers from Catalan separatist party ERC to abstain, the numbers still look tight.

Sanchez, 47, could win by just two votes after the sole lawmaker from the regional Coalicion Canaria formation broke ranks at the weekend to say she would vote against him instead of abstaining.

Spain, the eurozone's fourth-largest economy, has been in political gridlock for most of the past year after two inconclusive elections in April and November.

Sanchez's Socialists won a repeat November 10 poll but were weakened, taking 120 seats -- three fewer than in April -- in an election which saw upstart far-right party Vox surge to third place.

Sanchez quickly struck a deal with Podemos to form what would be the first post-dictatorship coalition government in Spain, despite having previously said that a coalition with the far-left would keep him up at night.

The two parties are pledging to lift the minimum wage, raise taxes on high earners and big business, and repeal elements of controversial 2012 labour market reforms that made it easier to fire workers -- measures which have alarmed business leaders who warn they will hurt job creation.

With the two formations' combined total of 155 seats still falling short of a majority, Sanchez has also secured the support or abstention of several smaller regional parties including the ERC which should see him squeak by in the second confidence vote.

As part of the ERC deal, Sanchez has agreed that the national government should hold talks with Catalonia's separatist regional administration to resolve the "political conflict".

Catalonia remains in flux following a 2017 independence referendum which Madrid declared unconstitutional.

"There is no other possible option" to a Socialist-Podemos government, Sanchez told parliament Tuesday ahead of the vote.

"Between this progressive coalition and the continuation of political deadlock, I hope the majority of the chamber picks the progressive coalition."