Spain's Sanchez will go ahead with PM confirmation vote, risking new elections

FILE PHOTO: Spanish Prime Minister Pedro Sanchez speaks at a news conference after a European Union summit in Brussels

MADRID (Reuters) - Spain's acting Prime Minister Pedro Sanchez will on Tuesday set a date for a parliamentary vote on whether he can stay on in the role, a Socialist party source said, as talks to form a government with its closest ally have stalled.

The vote will trigger a two month deadline to repeat the elections if Sanchez does not get enough support.

A Socialist source said on Tuesday that negotiations with the leftist Podemos party, seen as the closest ally to Sanchez, are stalled, with Podemos refusing to rule out voting against Sanchez's candidacy.

"Acting Prime minister Pedro Sanchez will meet on July 2 with the parliamentary speaker Meritxel Batet to set a date for the vote (...) Spain has no time to waste and needs a government as soon as possible," said a source of socialist party.

Sanchez's Socialists won April elections but failed to secure a majority, meaning they require the support of several smaller parties to form a government.

Both PP and Ciudadanos have ruled out supporting Sanchez.

(Reporting by Belen Carreno; Writing by Andres Gonzalez; Editing by Toby Chopra)