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The deal-breaker for the PSOE has been any threat to "national unity", i.e. any discussion of Catalan or Basque independance. Which are a fundamental part of the program for the Podemos coalition.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II
by eurogreen on Sun Jun 26th, 2016 at 06:55:11 PM EST
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The PSOE has even said they would refuse a minority government that required the abstention of the separatists, that is ERC, CDC and Bildu. PNV is the only acceptable nationalist ally for the PSOE.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Sun Jun 26th, 2016 at 07:00:00 PM EST
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