Pedro Sánchez remains Spain’s prime minister heading a minority PSOE-led government that depends on fragile parliamentary alliances. Recent regional election results show a clear rightward shift favoring the PP and Vox, while multiple corruption scandals tied to the Socialist party and Sánchez’s circle have eroded support among traditional voters. The next general election must occur by August 2027, giving the opposition time to press for an early vote or no-confidence motion. Sánchez continues to pursue policy initiatives on migration regularization and climate measures, yet polls indicate his coalition trails significantly. Traders view sustained coalition stability and the absence of immediate parliamentary defections as the main factors keeping near-term removal probabilities low.