Caretaker PM Pedro Sanchez and far-left.......>

SPAIN: Caretaker PM Pedro Sanchez and far-left Podemos leader Pablo Iglesias to

appear at joint press conference at around 1345CET (1245GMT) following

negotiations between Podemos and Sanchez's Socialists on Monday.

- The formation of an official coalition would be a surprise, given Sanchez's

previous unwillingness to put Podemos politicians into the Council of Ministers.

- Even if the two sides can come to an agreement it would require the support of

a number of smaller and regionalist parties, potentially watering down Podemos'

more left-wing policies. 

- While a leftist Socialist-Podemos gov't could spook markets, the formation of

a gov't would end months of political uncertainty and potentially boost growth

if gov't spending takes off.