Is Spain's opposition plotting to oust weakened PM soon?
The case has also ensnared former transport minister José Luis Ábalos, another of Sánchez's former right-hand men who helped propel him to power in 2018.
Few doubt the existence of the alleged murky dealings after media published audio recordings which discussed the payment of kickbacks for the awarding of public contracts and the description of prostitutes.
Separate investigations are underway into Sánchez's wife and brother, heightening speculation that the survival instincts of a leader who came to office promising to eradicate corruption will finally succumb.
The rival Popular Party (PP) congress in Madrid was already scheduled but has now taken on more importance while the Socialists try to resolve the political bombshell of the corruption scandal.
The centre-right formation will re-elect Alberto Núñez Feijóo as leader and set the stage for new secretary general Miguel Tellado, an abrasive figure who calls the Socialists a "mafia" and Sánchez a "capo".
With these and other changes, the PP "will look more like a group of hooligans than a moderate conservative party", the Socialists retorted.
'Faux pas risk'
The PP smells blood with the Socialists in a moment of weakness, but toppling the government and triggering early elections is fraught with difficulty.
Although the PP has the most seats in parliament following the last vote in 2023, Feijóo has avoided filing a no-confidence motion for lack of a majority.
A theoretical alliance with the far-right Vox party would not reach a majority in the 350-seat parliament and repel other potential allies.
On the other hand, Sánchez managed to stay in power in 2023 by cobbling together a motley alliance of far-left and regional separatist groups.
The influential PP head of the Madrid region, Isabel Díaz Ayuso, warned her party against "faux pas" that could end up strengthening Sánchez.
But pressure continues to grow on Sánchez, with the PP demanding his resignation and misgivings growing among his own ranks.
Emiliano García-Page, the Socialist leader of the central Castilla-La Mancha region, told Cope radio that "there is no dignified way out" for the premier.
The Teneo consultancy predicted early elections as the most probable outcome without ruling out Sanchez's survival to the end of the government's term in 2027.
As "further revelations about the kickbacks scandal emerge, the government could lose the support of its allies," Teneo wrote in a note.
Sanchez will chair a Socialist federal committee in Madrid on Saturday that will elect Cerdán's successor, while on July 9 he will appear in parliament to give explanations on the corruption case.
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Local Spain
10 hours ago
- Local Spain
Is Spain's opposition plotting to oust weakened PM soon?
The minority left-wing coalition government suffered a harsh blow on Monday with the jailing of ex-Socialist heavyweight Santos Cerdán for alleged corruption. The case has also ensnared former transport minister José Luis Ábalos, another of Sánchez's former right-hand men who helped propel him to power in 2018. Few doubt the existence of the alleged murky dealings after media published audio recordings which discussed the payment of kickbacks for the awarding of public contracts and the description of prostitutes. Separate investigations are underway into Sánchez's wife and brother, heightening speculation that the survival instincts of a leader who came to office promising to eradicate corruption will finally succumb. The rival Popular Party (PP) congress in Madrid was already scheduled but has now taken on more importance while the Socialists try to resolve the political bombshell of the corruption scandal. The centre-right formation will re-elect Alberto Núñez Feijóo as leader and set the stage for new secretary general Miguel Tellado, an abrasive figure who calls the Socialists a "mafia" and Sánchez a "capo". With these and other changes, the PP "will look more like a group of hooligans than a moderate conservative party", the Socialists retorted. 'Faux pas risk' The PP smells blood with the Socialists in a moment of weakness, but toppling the government and triggering early elections is fraught with difficulty. Although the PP has the most seats in parliament following the last vote in 2023, Feijóo has avoided filing a no-confidence motion for lack of a majority. A theoretical alliance with the far-right Vox party would not reach a majority in the 350-seat parliament and repel other potential allies. On the other hand, Sánchez managed to stay in power in 2023 by cobbling together a motley alliance of far-left and regional separatist groups. The influential PP head of the Madrid region, Isabel Díaz Ayuso, warned her party against "faux pas" that could end up strengthening Sánchez. But pressure continues to grow on Sánchez, with the PP demanding his resignation and misgivings growing among his own ranks. Emiliano García-Page, the Socialist leader of the central Castilla-La Mancha region, told Cope radio that "there is no dignified way out" for the premier. The Teneo consultancy predicted early elections as the most probable outcome without ruling out Sanchez's survival to the end of the government's term in 2027. As "further revelations about the kickbacks scandal emerge, the government could lose the support of its allies," Teneo wrote in a note. Sanchez will chair a Socialist federal committee in Madrid on Saturday that will elect Cerdán's successor, while on July 9 he will appear in parliament to give explanations on the corruption case.
Local Spain
4 days ago
- Local Spain
Official for Spain's ruling Socialists sent to prison for corruption
Former transport minister José Luis Ábalos has also been implicated in the investigation into kickbacks for public contracts, which has created the biggest political crisis Sanchez has faced since taking office in 2018. The sources said a Supreme Court judge ordered the detention of Cerdán, who has only recently quit as the Spanish Socialist Workers' Party organisation secretary -- the ruling party's number three post -- as there was a "risk" he might try to flee or destroy evidence. He is being held without bail on allegations of corruption, money laundering and criminal association, the sources said. Cerdán denied the accusation in an audience with the lead investigating judge on Monday, saying he was the victim of a political plot, they said. Sánchez has sought to distance himself and the Socialist party from the scandal, which involves suspicions of dirty dealings in the purchase of health equipment during the Covid-19 pandemic. "The Socialist party reacted firmly from the start," the prime minister said. "Santos Cerdán was dismissed" from the party when the revelations emerged, he added when questioned about the case at an international conference in Seville. A police report has said there was evidence including audio recordings suggesting Cerdán received payments in exchange for irregularly awarded public contracts. Ábalos, the prime minister's former right-hand man, and a top adviser, Koldo García, are also among the suspects targeted in the investigation. Sánchez has repeatedly apologized over the case and denied knowledge of the alleged scheme. But the opposition has called for the prime minister to resign.
Local Spain
26-06-2025
- Local Spain
What the Trump-Sánchez Nato standoff means for Spain
US President Donald Trump has publicly threatened to punish Spain with trade measures for not committing to spending 5 percent of its GDP on defence. Following this week's Nato summit in the Netherlands, Trump threatened to double tariffs on Spain after Madrid's refusal to commit to paying 5 percent, promising that "we are going to make them pay twice as much' in order to recoup the difference. At the summit, Sánchez avoided greeting Trump and in the global leaders' photo he was conspicuously to the side, appearing isolated. The outburst is typical of Trump and follows a well-known formula for the US President: threatening tariffs in order to resolve political disputes. 'They're going to pay double,' Trump said after the summit, referring not to the defence budget commitment, but rather to Spain's trade bill. Experts note that, if realised, which is far from certain, the most likely risk would be in sectors that are export-sensitive for Spain, such as agri-food products and pharmaceuticals. Can Trump actually 'double' tariffs on Spain and what impact would it have? Not in the simple terms Trump puts it, at least. Experts suggest that the US may struggle to actually implement specific tariffs or wider trade measures on Spain without involving other EU member states. In that sense, this may be a war of words rather than an economic showdown. Sánchez responded to Trump's threats by rightly reminding him that Spain is a "sovereign" country and that trade policy with any EU member must be agreed with Brussels "on behalf of all member states." 'Trade negotiations are taking place between the European Commission and the United States,' Federico Steinberg, senior researcher at the Elcano Royal Institute and Professor at Georgetown University, told El País. That's why, he added, it is very difficult, if not impossible, to establish trade penalties of any kind that only affect one country. 'If you want to influence Spain, you can impose tariffs on agricultural products such as olive oil or wine,' he said, products which account for a large share of Spanish exports. Last year, for example, Spain exported around €1.2 billion in oils and almost €400 million in wine. The problem, Steinberg adds, is that the measure would indirectly affect other EU countries such as Italy or France, countries that also export wine and olive oil. In other words: the EU is a trading block and individual countries can't be singled out for punishment. Ángel Talavera, chief economist for Europe at Oxford Economics, explained that if penalties were imposed through some special procedure, which is 'unlikely,' he notes, it would be specific products with a large share of the Spanish export market in order to apply political pressure, as he did in his first term with olives. Trump, he adds, 'has already shown that he has no qualms about using any mechanism at his disposal to get what he wants.' What would it theoretically mean for the Spanish economy? So say the US did somehow manage to put tariffs on Spain, 'the products most exposed would be electrical appliances, machinery and oils,' Talavera says. Raymond Torres, director of economic analysis at Funcas, agrees that if any punishment-type measures, in whatever form, come to fruition, 'they are more likely to be tariffs on specific products, as happened in 2018 with some agri-food products.' During Trump's first term, the US imposed special tariffs on olives, and shipments fell significantly during the first two years. In that case, a compensatory effect was achieved because other markets were identified and within a few years the export volume had practically returned to the same levels. Torres, however, points out to El País that this substitution effect may be more complicated with other products, especially pharmaceuticals, where exports to the US are also very important. What does it mean for domestic Spanish politics? Though you might think that Sánchez would want to avoid a clash with the most powerful man in the world, especially one so prone to outbursts and personal vendettas, in reality Trump's pledges to punish Spain — and the issue of defence spending more widely — may actually strengthen the government. As The Local has covered extensively this year, Sánchez's very uncomfortable domestic political context means that the Spanish Prime Minister may actually welcome an international distraction. With his inner-circle engulfed in corruption scandals, Sánchez will likely be grateful for some political oxygen by being abroad and talking about something other than criminal allegations against his government. Crucially, he's also keen to be seen by his left-wing allies, namely coalition partner Sumar, but also Podemos and Esquerra Republicana de Catalunya, as pushing an anti-Nato stance in order to shore up support and weather the storm of scandals in the face of any potential confidence vote against him. With the right-wing opposition Popular Party and far-right Vox calling for Sánchez's resignation, any attempt to topple the Sánchez government in Congress would need support (and votes) from across the spectrum in order to get a majority. So by publicly challenging Nato and standing up to Trump (however sheepish Sánchez looked at the summit) the Spanish Prime Minister has challenged what the Spanish left would frame as the interventionist military industrial complex. A personal face-off with Trump will give Sánchez extra reward in the eyes of many.
