Madrid, August 3 (RHC)-- The leaders of the two main political parties in Spain have failed to reach an agreement to form a government, leaving the country in a political deadlock that could lead citizens to another election less than two months after the last one.

Acting Prime Minister Mariano Rajoy from the conservative People's Party met with Pedro Sanchez from the Socialist PSOE, who finished second in the last election, hoping to build a new “grand coalition” government. Sanchez rejected Rajoy’s proposal.

Rajoy has insisted that the call for a third round of elections would be "nonsense" and “an international ridicule.” However, elections could be the only possible way out of the impasse since no political party has been able to gain an absolute parliamentary majority.

Spain has been without a fully-functioning government since December. While smaller parties such as Ciudadanos and the anti-austerity coalition Unidos Podemos have gained popularity and influence in past two failed elections, they – like the PSOE – are not willing to support the government of Rajoy, leaving the right-wing party frustrated and without a majority coalition.