Prime Minister Pedro Sánchez has repeatedly stated his intent to complete the full legislative term ending in August 2027, despite recent regional setbacks and mounting pressure from coalition partners. PSOE suffered significant losses in the May 2026 Andalusian election and prior votes in Aragon and other regions, reflecting a broader rightward shift favoring the PP and Vox. Fresh corruption investigations, including a Civil Guard raid on party headquarters and related indictments, have prompted some parliamentary allies, such as the Basque Nationalist Party, to call for early dissolution. Budget negotiations and Junts support remain uncertain variables that could influence timing, though constitutional rules give Sánchez sole authority to request dissolution absent a no-confidence motion. Traders assess these dynamics against historical precedent where Sánchez has called snap votes only after major electoral defeats.