Pedro Sánchez’s minority government has faced sustained pressure from corruption investigations involving close associates, including 2026 prison sentences for former ministers José Luis Ábalos and Santos Cerdán in the Koldo case, plus probes touching his wife and brother. Loss of Junts parliamentary support since late 2025 has eliminated the coalition’s majority, forcing reliance on an extended 2023 budget and limiting legislative action. The July 2026 Ceuta migrant influx has drawn fresh opposition criticism and polling weakness for the PSOE, with the PP and Vox projected to hold an absolute majority in many surveys. Sánchez has rejected non-binding congressional calls to resign or face a confidence vote, instead emphasizing economic growth and committing to serve through the scheduled 2027 general election. Traders weigh these institutional and scandal-related constraints against the absence of a viable no-confidence majority or snap-election trigger.