The government should craft an agreement among all of Mexico's political parties to deal with the surging violence in the western state of Michoacan, Party of the Democratic Revolution, or PRD, chairman Jesus Zambrano said.

"There is a need for a grand agreement of all the political forces to work toward a solution to the conflict," the leftist leader said during a ceremony on Saturday.

The violence in Michoacan intensified after masked men set fire Friday to businesses, seven vehicles and two municipal offices in Apatzingan, a city in the Tierra Caliente region.

Some Mexican analysts say Michoacan is close to becoming a failed state because some areas are ungovernable due to the presence of drug traffickers and the emergence of vigilante groups.

Community self-defense groups occupied two more towns in Michoacan on Saturday.

Vigilantes entered El Ceñidor, a town outside the city of Paracuaro, and occupied it, a Federal Police spokesman said.

Paracuaro is one of the more than one dozen cities and towns where self-defense groups have been formed to fight the Caballeros Templarios drug cartel.

Vigilantes also took control of Zapotan, a coastal community outside the city Coahuayana.

"We are paying the price today for letting organized crime get involved in the 2011 elections, now they are cashing in and want to become the owners of the state of Michoacan," Zambrano said.

The federal government must take action to restore the rule of law in Michoacan, the PRD chairman said.

"Before going and thinking about how to keep the army in the streets, we have to demand that the federal government be effective and efficient, and that it insist in the concrete case of Michoacan on working on a grand accord with the agreement of all the political forces, who must participate in resolving the conflict," Zambrano said.

Apatzingan is the main bastion of Los Caballeros Templarios.

Los Caballeros Templarios, which was founded in December 2010 by former members of the La Familia Michoacana cartel, deals in both synthetic drugs and natural drugs.

The gang commits murders, stages kidnappings and runs extortion rackets that target business owners and transport companies, affecting everyday life.

The cartel uses Michoacan's 270 kilometers (168 miles) of coastline to smuggle chemical drug precursors for the production of synthetic drugs into Mexico.

The community self-defense groups emerged in Michoacan in February 2013 to fight the cartel.

Community self-defense groups and community police forces have been formed in 15 of Michoacan's 113 cities. EFE