PSOE turns down offer of 'grand coalition' with PP

Spain’s acting Prime Minister Mariano Rajoy has had his bid to form a "grand coalition" following his second election victory turned down.

His ruling Partido Popular won 137 seats in Sunday's unprecedented repeat vote, which was still short of the majority in the 350-seat parliament that it enjoyed after the 2011 election.

Sr Rajoy's party also won the December election but no other major party was willing to help him form a government - a scenario that could happen again.

The party's leadership met to review its options. Prior to that, Sr Rajoy, 61, told Cope radio he would again push for a "grand coalition" with the Socialists, who placed second on Sunday, winning 85 seats in their worst-ever result.

But PSOE spokesman Antonio Hernando said: "We are not going to support Rajoy's investiture nor abstain."

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