Analysis-Down but not out: Spain's PM Sanchez faces country's ire and long road ahead

Spain's acting Prime Minister Pedro Sanchez smiles after signing an agreement with Andoni Ortuzar, the president of the Basque Nationalist Party (PNV), that will support Sanchez's bid to clinch another term in office at the Parliament in Madrid, Spain, November 10, 2023. REUTERS/Susana Vera

MADRID/BARCELONA (Reuters) - After Spain's Socialists failed to clinch a majority in a July election, it was clear they would have to do a deal with smaller parties, including Catalan separatists, for Prime Minister Pedro Sanchez to remain in power.

But when the deal, forged over months of tense negotiations, finally landed on Thursday and confirmed Catalan independence activists would be given amnesty in return for their support, it still sent shockwaves around the country.