Spain's Socialists, hard-left Sumar strike government coalition deal

Spain's left-wing Sumar leader Yolanda Diaz and Spain's acting Prime Minister and Socialist Party (PSOE) leader Pedro Sanchez sit on the day of a parliament session where lawmakers vote for a speaker and for members of the parliament's executive board, as Spain's new parliament is constituted, following an inconclusive snap election on July 23, opening the race for PM nomination, at the Spanish parliament, in Madrid, Spain, August 17, 2023. REUTERS/Violeta Santos Moura

MADRID (Reuters) -Spain's Socialist Party and the hard-left Sumar have reached a coalition agreement to form a new government, both parties said on Tuesday, with the deal including a proposal to reduce working hours without changing salaries.

The agreement came after acting Prime Minister Pedro Sanchez met with Sumar leader and acting Labour Minister Yolanda Diaz on Monday. Sanchez requires the support from Sumar's 33 lower-house lawmakers - as well as from other parties, including some advocating for Catalan and Basque independence - in his bid to renew his term as premier.