Other leaders, such as the leading opposition Socialist party chief Pedro Sanchez could also try to form a government.
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Rajoy’s PP and opposition parties now have until October 31 to strike a deal before another election is called automatically.
Spain has been in political paralysis for more than eight months after parliamentary elections on December 20 and June 26 left the country’s four largest political parties at odds on how to create a coalition government.
Rajoy, leader of the conservative Popular Party (PP), lost the vote of confidence with 180 votes against him and 170 in favour – the same result he obtained during the first vote on Wednesday.
In Friday’s vote, due around 1800GMT, a simple majority would enable Rajoy to form a PP-led minority government. Under the timeline imposed by Spanish law, the next ballot could fall on Christmas Day, although politicians said they would do all in their power to bring it forward by a week. Neither the prospect nor the timing of a third election will be popular with Spanish voters, who are growing exhausted of the politicking and the lack of a proper government.
The political impasse could take its toll on Spain’s economic recovery and is fuelling voters’ frustration.
The scene could change after Basque and Galicia regional elections September 25 when deals between local party branches may alter allegiances at a national level and free things up.
Rajoy’s anti-regionalist rhetoric has damaged his standing with Basque and Catalan parties that have traditionally helped support minority governments at a national level. He would need just 11 abstentions to win this time; but opponents, including the Socialists who voted unanimously against him earlier this week, have so far shown no signs of ceding. The party won the most seats in both but lacks votes in Parliament to win an obligatory confidence vote to form a government.
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The Basque Nationalist Party (PNV), which has five seats, could support Rajoy nationally if it needs the backing of the PP to govern in the Basque Country following these polls.
