Spain's snap general election on November 29, called after parliament rejected housing reform decrees amid widespread protests over rising rents and evictions, represents the central driver of market positioning on Pedro Sánchez's tenure. His minority PSOE-led coalition has faced repeated legislative setbacks, ongoing corruption cases involving party figures and allies, and voter discontent over cost-of-living pressures, immigration, and recent transport incidents. Polls indicate the conservative People's Party leads, with a likely alliance alongside Vox positioned to secure a parliamentary majority and form the next government. Sánchez's re-election bid depends on consolidating left-wing support despite internal divisions, while any post-election coalition negotiations or failure to retain office would trigger his departure as prime minister.