Zapatero Seeks Alliances to Wield Power After Divisive Spanish Poll

The Spanish prime minister, José Luis Rodríguez Zapatero, vowed to tackle the economy and social reform yesterday as he sought the backing of regional parties to form a government.

The prime minister's Socialist party fell seven seats short of the absolute majority of 176 in the lower house of parliament in Sunday's election and must try to form alliances with one or more of the smaller parties. The conservative opposition Popular party, headed by Mariano Rajoy, won 153 seats.

At his first press conference after a divisive election, Zapatero said: "This legislature must have as its principal aims new drives in the economy, employment and social policies, and the method will be dialog and social agreements."

Rather than being a permanent alliance, the new government is likely to consist of adhoc alliances on individual policies. Zapatero did not rule out a pact with the moderate Catalan nationalist party, Convergencia i Unio, which won 11 seats - enough to take the government past the magic number of 176. The Basque Nationalists, with six seats, have also offered support.

Charles Powell, a history professor at San Pablo-CEU University in Madrid, said that 169 seats was "a very comfortable victory. With a 75% turnout and a 43% slice of the vote, the government can rightly argue that it has a strong mandate".

The murder last Friday of Isaias Carrasco, a former socialist town councilor, was blamed on Basque separatists Eta, and served as a bloody reminder that their 40-year-long violent campaign continues. Zapatero was criticized over the failure of peace talks with Eta in his first term, and it is unclear whether he will return to the negotiating table.

But the most important problem facing Zapatero is the downturn in Spain's economy. After a decade of spectacular growth, unemployment is rising, inflation is twice the EU average, and a crisis has hit the vital construction industry.

The government says its record budget surplus will allow it to fund a public works program and stimulate growth. But many analysts say this is a sticking-plaster approach, and investment in research, development and education is vital.

Zapatero has pledged to push on with the liberal social policies that earned him a reputation as a "secular reformer" in his first term, during which he clashed with the Catholic church's hierarchy over several policies. With the rightwing Antonio María Rouco Varela recently reappointed as president of the Spanish bishops' council, many fear these clashes will continue.