The possibility of an election in November is more plausible after acting prime minister Pedro Sanchez lost a second parliamentary vote to be confirmed on the job after his party failed to secure a deal with the left-wing Podemos.
Spanish MPs rejected appointing Sanchez as prime minister in the first and second poll on Tuesday and Thursday.
Sanchez required an absolute majority from parliament in the first vote, however, in the second one, he only required a simple majority.
Sanchez has only been the country’s leader in an acting capacity since April after failing to win a majority in the Spanish general election.
He first became prime minister of a minority government in June last year when parliament voted out a conservative government over a corruption scandal.