The coalition government being planned is along Angela Merkel’s CDU-CSU-SPD coalition in Germany.
Rajoy is willing to take onboard several of the PSOE’s manifesto commitments, and may even consider their plans to reform the Constitution.
If the coalition is rejected, then a second plan is to offer a two year term to allow Rajoy to push through his economic plans, whilst a government committee is setup to work on the PSOE plans to reform the Constitution and several other manifesto commitments.
Rajoy says that the citizens of Spain have spoken, and their will is for the main parties to work together. But the main opposition parties all said before the elections that they would only work with the PP if Rajoy quit.