Pedro Sanchez has for the first time acknowledged that early elections could be called if his government fails to secure support for its next national budget.

Speaking from a European Council summit in Brussels on Thursday, the prime minister said his government would negotiate with parliamentary partners to try to pass the 2027 General State Budget, but admitted decisions would have to be taken if those efforts failed.

The comments mark a notable shift in tone from the Socialist leader, who has repeatedly insisted he intends to see out the current legislature until its scheduled end in July 2027.

Pressure growing

Sanchez remains reliant on support from a complex coalition of regional and nationalist parties to govern, and warnings from some of those allies are becoming increasingly blunt.

On Wednesday, Basque Nationalist Party (PNV) spokesperson Maribel Vaquero suggested Spain was entering the ‘final stretch’ of the legislature and argued that if the government could not present and pass a budget, Parliament should be dissolved and fresh elections called.

The pressure comes as Sanchez continues to face mounting political difficulties linked to corruption investigations affecting figures connected to the PSOE and his wider political circle.

‘We’ll fight to get the budget approved’

Despite the growing speculation, Sanchez insisted his government remains focused on governing.

‘Whatever is said about motions of no confidence or early elections, life goes on and the government continues,’ he told reporters.

He pointed to recent legislative victories and defended the government’s economic record, arguing that Spain’s strong macroeconomic performance should now be reflected in a new budget package.

‘We are going to present the budget and we are going to fight hard to get it approved,’ he said.

The PM added that the proposed spending plans would continue the economic and social policies pursued by his government over the past eight years.

Feijoo demands ‘urgent’ election

Opposition leader Alberto Nuñez Feijoo seized on the uncertainty, renewing calls for a snap election.

Also speaking in Brussels, the leader of the conservative People’s Party (PP) said Spain’s international reputation had been damaged by a series of corruption scandals.

‘It embarrasses me to explain that my country is today the EU country with the most corruption cases,’ Feijoo told journalists.

He argued that the PP represented the only viable alternative government and called for Spaniards to be given the opportunity to vote as soon as possible.

Could Spain vote in 2027?

While Sanchez has consistently ruled out elections in 2026 and has repeatedly said there will be no ‘super Sunday’ combining national, regional and local elections, Thursday’s remarks suggest a snap poll in early 2027 is no longer off the table.