Corruption investigations involving Pedro Sánchez’s inner circle, including charges against his wife and raids on PSOE headquarters, have intensified pressure on his minority government since spring 2026. A non-binding June parliamentary resolution calling for his resignation passed narrowly amid opposition from the PP and other parties, though no successful no-confidence motion has followed. Coalition partners remain divided while the government operates without a new budget, rolling over 2023 appropriations into 2026. Sánchez has resisted early elections scheduled for 2027, focusing instead on migration surges at Ceuta and wildfire response. Traders weigh these parliamentary and legal headwinds against the prime minister’s demonstrated ability to retain power through fragmented alliances and procedural maneuvers.