Spain's leading political parties signed a rare pact on Monday to fight Islamic extremism with new anti-jihadist laws in the wake of last month's deadly attacks in Paris.

The bill proposes to toughen penalties for terrorism offences and give judges and police new powers to prosecute "lone wolf" radicals and those who join armed groups in war zones such as Syria.

Conservative Prime Minister Mariano Rajoy and the leader of the opposition Socialist Party, Pedro Sanchez, signed the joint reform bill, which must now go to parliament for approval.

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