Madrid — Socialist Pedro Sanchez is set to return as prime minister of Spain with his left-leaning allies close to a majority, though he may still rely on Catalan separatists to govern. The Socialists won 123 seats in Sunday’s election, up from 85 in 2016. Its left-wing ally Podemos has another 43 seats while the Basque Nationalists, another group likely to support Sanchez, has six. That would give Sanchez 172 seats. He needs 176 for a majority. With parties preparing to fight the European elections at the end of May, it is likely to be at least a month before any alliance takes shape. If Sanchez can deliver Spain’s first stable government in almost four years he will have a chance to chart a way forward for the country after years of economic crisis and political turmoil. He will also become the standard bearer for social democracy across Europe. A second Sanchez government bucks the trend of crumbling voter support for Europe’s other center-left parties. He has already served 10 m...

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