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imageMADRID: Spain's embattled Socialists gather Sunday for a crunch strategy meeting expected to see the party lift its veto on a minority conservative government and finally unblock the country's ten-month political deadlock.

The Madrid gathering of the Socialists' federal committee, which sets party policies, crowns weeks of in-fighting in a grouping weakened by dismal election results and divided over what strategy to take as Spain seeks to form a government after two inconclusive general polls.

The divisions came to a head earlier this month when high-ranking Socialist members in favour of letting a conservative government rule and thus avoiding a third election staged a revolt against party chief Pedro Sanchez, forcing his resignation.

Sanchez opposes acting conservative Prime Minister Mariano Rajoy, who came to power in 2011 and whose four-year term was marked by a series of corruption scandals.

Rajoy's Popular Party (PP) won elections in December 2015 and again in June this year but without enough seats to rule alone, and needs the main opposition Socialists to either support its government or abstain in a parliamentary confidence vote.

"Right now, with the worst results in our recent democratic history, the PSOE (Socialist Party) finds itself in a key situation," said Guillermo Fernandez Vara, president of the western Extremadura region and a leader of the rebellion against Sanchez.

Writing in his blog, he argued that the party was in a unique position as the only grouping that could finally allow a government to be formed, and would also be able to mount a "true opposition" once Rajoy was back in power.

With Sanchez out of the way and the party run by an interim executive, the federal committee on Sunday is likely to decide to abstain, even if divisions over the issue remain high and some lawmakers insist on voting no.

This would likely prompt Rajoy -- who lost a September vote of confidence when the Socialists under Sanchez cast their ballot against him -- to submit himself to another parliamentary poll next week, knowing he would win this time.

- Socialists lost 'credibility' -

By the beginning of November, Spain should finally get a government at a sensitive time as the country recovers from a devastating economic crisis.

But it will be weak as far-left Unidos Podemos and centrists Ciudadanos -- the two upstarts that put an end to Spain's traditional two-party system in both elections -- will join the Socialists in the opposition, making things difficult for the PP.

For the Socialists, though, the damage has been done and many lawmakers feel that by allowing their staunch rivals to rule, the PSOE will alienate grassroots members who blast the PP for repeated corruption scandals and rising inequalities.

Sure enough, people braved the rain to protest outside the party headquarters in Madrid on Saturday, holding placards that read "PP No" or "We want to decide, No means No".

In an interview with online daily El Espanol, Socialist lawmaker Susana Sumelzo said the party would "undoubtedly" do badly in future elections and had lost credibility among voters.

"It's not just because of the abstention but also because of the shameful spectacle that the PSOE has presented in the past days," she said.

"I predict that in the medium and long-term, it will be very complicated. We will have to work a huge amount to get our credibility back."

Copyright AFP (Agence France-Presse), 2016

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