Spain's acting prime minister rejects stepping aside to ease the political deadlock that has made it impossible for parties to form a government three months after a general election.

Mariano Rajoy, speaking at a political rally in Guadamur in the central province of Toledo, vowed he "won't give up" on his idea of forming a "grand coalition government" with the Socialist Party.

Elections held Dec. 20 produced a fragmented parliament with no party winning a majority in the 350-seat chamber.

Rajoy, whose Popular Party came in first, insists his party should head a government, but Pedro Sanchez, whose Socialists came second, says he won't work with him.

Lawmakers must form a government within the next two months or another general election will be held June 26.