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(Forwarded from clari.news.europe)

	MADRID, Spain (UPI) -- Acting Prime Minister Felipe Gonzalez took an
important step toward forming a new government Thursday, inviting
Catalonia's regional Convergence and Union Party to join his Socialists
in forming a new ruling coalition.
	The offer came during 2 1/2-hour meeting between Gonzalez and Jordi
Pujol, the leader of the Convergence and Union Party, at the prime
minister's residence, Moncloa Palace, in the Spanish capital.
	``He told me he believed it would be best to form a coalition
government in which we would take part,'' Pujol said after the meeting.
``He did not make any detailed offers, and nor did I.''
	Pujol said they had agreed to meet again next week and that in the
meantime he would consult his party.
	``Gonzalez considers that a government with the regionalist parties
could guarantee the stability needed to face the problems the country is
suffering from at the monment,'' government spokeswoman Rosa Conde said.
	Pujol's party holds the balance of power in Parliament following June
6 elections which, for the fourth time in a row, were won by Gonzalez's
Socialist Workers Party of Spain.
	But for the first time in 10 years as prime minister, Gonzalez found
himself without an absolute majority in parliament, holding 159 of the
350 seats. He must look for partners if his party is to govern with an
absolute majority.
	Convergence, with 17 seats, is considered the most likely partner for
the Socialists. Pujol's party desribes itself as centrist but produced a
right-wing economic policy, including a demand for immediate tax cuts,
in its election manifesto.
	The El Pais newspaper, which is aligned with the Socialists, Thursday
quoted ``sources close to Gonzalez'' saying he wanted to form a
coalition government with Convergence rather than depend on agreements
on specific items and a general promise of support in parliament.
	Pujol has indicated that financing of the Catalan regional
government, of which he is president, and national economic policies
topped his party's agenda for reaching compromises with the Socialists.
	Convergence is demanding the Socialists stick to a 1992 verbal
promise to return 15 percent of taxes raised in Catalunya to the
regional government. If the two parties do form a coalition, the
Catalans could expect to occupy one or two ministries.
	The Basque Nationalist Party, with five seats, is considered a
possible additional partner to a Socialist-Catalan pact.
	Gonzalez on Wednesday met Francisco Frutos of the Communist-led
United Left coalition, which has 18 parliamentary seats.
	United Left is mathematically a rival coalition partner to
Convergence, but its radical economic program, which demands changes to
the Maastricht Treaty on European Union and shorter working weeks, would
make it a difficult partner for the Socialists.
	``We agreed on the problems, but not on the solutions,'' Frutos said
afterward.
	Gonzalez was due to meet Basque leader Xabier Arzalluz on Friday.
	He was to hold another round of talks with party leaders next week.
	He also was due to start a series of meetings with trade union
leaders and employers to try to create a ``social pact,'' including a
three-year wage agreement, in order to fight unemployment and revitalize
the economy.
	The European Community on Wednesday published a report predicting
Spain would have the worst unemployment of the 12 member states this
year and next.
	It said unemployment would reach 21.75 percent of the working
population by the end of 1993 and 23 percent by the end of 1994. GDP was
predicted to fall by 0.5 percent in 1993, but grow 1.25 percent in 1994.
The new government will not be formed until after Parliament sits again
on June 29.