More than two months after the early parliamentary elections in Spain, the path is clear for the re-election of Prime Minister Pedro Sánchez. Following the narrow failure of Núñez Feijóo, whose conservatives won the most votes but not a majority of seats on July 23, King Felipe VI will propose the socialist incumbent as a candidate on Tuesday.

According to the rules, Sánchez has until November 27 to be elected, thus averting snap elections in January. In addition to government formation negotiations, the 51-year-old economist from Madrid must also lead the rotating presidency of the EU Council and host the EU Summit in Granada this week.

In the previous legislative period, the minority government of Socialists and Leftists depended on the votes of some nationalist parties from the Basque Country and Catalonia. This arrangement proved to be more stable than expected, leading to major reforms and the passing of annual budgets. Nonetheless, this time, the task of forging a majority is tougher than ever. Sánchez must bring all four nationalist parties on board.

The two Basque parties are straightforward. However, the Catalan separatists demand a high price for their support: amnesty for hundreds involved in the illegal independence referendum in 2017. Sánchez and the Socialists rejected this demand until the July 23 elections. Now they are open to such a solution. The other separatists' condition, a binding independence referendum for Catalonia, is hardly achievable. It is a red line for Sánchez and would require a constitutional amendment, necessitating a qualified majority in parliament.

The socialist Prime Minister is notorious for his negotiation skills. He must now persuade the separatists to abandon the wish for a referendum. The discussions with the Basques and Catalans will also include talks about the 2024 budget. Finance Minister María Jesús Montero assured that it is not too late to initiate the budget process should Sánchez be re-elected. Perhaps the Prime Minister will then have to continue without his Deputy Prime Minister Nadia Calviño. The Economy Minister is considered a strong contender for the position of President of the European Investment Bank.