Spain: Problems galore for Pedro Sanchez in corruption probes, Opposition says ‘hell before Christmas’

As Spain Prime Minister Pedro Sánchez seeks to fend off a barrage of corruption probes into members of his family and his party, Cuca Gamarra, spokesperson for the opposition conservative People’s Party (PP), has claimed that the PM is is experiencing “hell before Christmas.”

According to a Politico report, PM’s allies argue that these scandals are part of a politically motivated witch hunt, especially as he struggles to maintain a fragile parliamentary majority.

“The government of Pedro Sánchez is at a critical juncture, it’s in a very difficult position,” Politico quoted political scientist Lluís Orriols, author of Democracia de trincheras (“Trench Democracy”), as saying.

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“His previous legislature was long and very successful in terms of legislative output and parliamentary stability — but now the situation is the polar opposite,” added Orriols.

Three separate investigations involving individuals close to Sánchez are currently underway: one concerning his wife, another involving his brother, and a third focused on alleged corruption among senior members of his party.

Sánchez’s wife, Begoña Gómez, has been under investigation since April for allegedly using her position as the prime minister’s spouse to influence government contract awards. She is also being scrutinised for purportedly misappropriating software from Complutense University, where she was employed. On December 18, she appeared for the third time before the investigating judge, denying any wrongdoing.

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In a separate matter, Sánchez’s brother, David Sánchez, is being investigated for alleged irregularities in his appointment as director of the office of performing arts in Badajoz. He is scheduled to testify in court on January 9.

The legal complaints that initiated both probes were filed by the far-right campaign organisation Manos Limpias. Sánchez’s allies have characterized these investigations as part of a right-wing effort — supported by the media and biased magistrates — to destabilise his government, Politico reported_._

“We know that they want to corral you through your family, we know that they are going after you because you represent the best of progress in Spain,” Politico quoted María Jesús Montero, finance minister and deputy secretary of the Socialist Workers’ Party (PSOE), as saying to Sánchez at a recent rally.

In April, shortly after forming a new coalition government, Sánchez threatened to resign in response to the investigation into his wife, describing it as an attempt “to dehumanise and delegitimize the political adversary through scandalous and false accusations.”

While the cases involving his family have received significant coverage in right-leaning newspapers, neither has resulted in charges so far, leading many observers to speculate that they may eventually be dismissed.

However, another investigation involving businessman Víctor de Aldama poses a greater threat. Aldama claims to have acted as an intermediary in paying commissions to government officials in exchange for awarding public works contracts to private companies, reported Politico.

Socialists accused of corruption

José Luis Ábalos, a former transport and public works minister and a key figure in the PSOE, became embroiled in controversy following the February arrest of his close advisor, Koldo García.

In response, the PSOE quickly moved to expel Ábalos, who continues to assert his innocence.

However, Aldama has made additional allegations implicating other prominent Socialists, most recently during his court testimony on December 17.

According to the Politico report, while Aldama has not provided concrete evidence to support his claims, the opposition is using these three separate investigations to suggest that the administration has significant underlying corruption.

“It is absolute cowardice for them to say that they are being persecuted,” Gamarra was quoted as saying. “No, they are not being persecuted — these are facts, it is the criminal code,” he added.

Pablo Simón, a political scientist at Carlos III University in Madrid, told Politico that the three ongoing probes have significant political repercussions beyond their legal implications.

“The government loses control of the agenda, so it is unable to ensure that the issues it wants to be talked about are talked about — such as the economy,” Simón was quoted as saying.

With its strong growth, controlled inflation and robust job creation, Spain topped a recent Economist ranking of the best-performing economies in the world. However, Sánchez’s government has struggled to benefit from such indicators as it bats away corruption-related attacks and defends concessions made to keep its parliamentary majority intact.

If the Aldama scandal escalates, Simón said, “it could mean that supporting the government ends up becoming radioactive” for other parties.

Fragile Coalition

So far, the junior coalition partner, left-wing Sumar, has backed the PSOE. However, with support from a diverse range of parties, including Catalan and Basque nationalists, the government’s stability remains precarious.

This instability was underscored when the Catalan separatist party Junts proposed a no-confidence motion against Sánchez, claiming he had not met previous commitments. While it’s unlikely Junts will follow through, this move is viewed as a strategy to extract more concessions from Madrid, such as increased funding for Catalonia.

Junts’ potential to block the 2025 budget, currently under negotiation, poses a more immediate threat to Sánchez. “The real test will be the budget; it’s effectively a no-confidence vote for the government in the next three months,” says Orriols.

Various parties are leveraging the budget for negotiations. The unpredictability of Sánchez’s allies led to the failure to approve the 2024 budget last year.

Additionally, his former coalition partner, the far-left Podemos, is demanding significant concessions — like breaking diplomatic ties with Israel and implementing strict housing rental caps — in exchange for continued support.

Together, these factors create a substantial risk of a parliamentary power collapse. “Preventing the approval of the budget for the second time in a row would clearly show that Pedro Sánchez does not command a parliamentary majority,” Orriols was quoted as saying.

With inputs from agencies