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MADRID, Oct 1 (Reuters) - The leader of Spain's Socialist party, Pedro Sanchez, resigned on Saturday after losing a party assembly vote, a party source told Reuters.
The party's members had met on Saturday to decide whether to oust Sanchez, a step which could pave the way for the formation of a new government and end a nine-month political deadlock.
Sanchez has led a stand-off with acting Prime Minister Mariano Rajoy's conservative People's Party (PP), which won the most votes but fell short of a majority in two inconclusive elections, and the dispute has frustrated attempts to form a government. (Reporting by Blanca Rodriguez, writing by Angus Berwick; Editing by Julien Toyer)