efe-epaBy Jake Threadgould Madrid

The Spanish Socialist Party and left-wing group Unidas Podemos on Tuesday signed a memorandum proposing what would be Spain’s first-ever coalition government following a repeat general election that failed to end a political deadlock and bolstered the far-right.

PSOE leader, Pedro Sánchez, who is the acting prime minister, and Pablo Iglesias, co-founder and leader of anti-corruption Podemos set out the preliminary stages of a four-year deal to run a “progressive” government.