Spain's acting Prime Minister Mariano Rajoy said he was still pushing to try and form a political alliance to govern with the left-wing Socialists and centrist party Ciudadanos, a day after deferring a confidence vote in parliament.

Rajoy, of the centre-right People's Party (PP), stunned rivals yesterday by saying he would not seek a confidence vote to try and form a government, as he lacked the necessary support from other parties after a highly-splintered election result on December 20.

He had been expected to agree to go through with the vote after a round of talks with King Felipe, which will now resume on Wednesday. Rajoy said an alliance between the PP, Socialists and Ciudadanos was "the most reasonable option."

"That was our view (before) and it is still our view," Rajoy said in a televised address from a party meeting in Cordoba.

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