Prime Minister Pedro Sánchez’s PSOE-Sumar minority coalition continues to prioritize completing its term through the August 2027 deadline, with repeated public rejections of a 2026 snap election as recently as June and July. The government focuses on securing passage of the General State Budget amid coalition negotiations involving parties such as Junts, while facing regional electoral setbacks for the PSOE and ongoing corruption probes. Sánchez retains constitutional authority to dissolve parliament, yet no successful no-confidence motion or budget defeat has created procedural compulsion. Traders therefore assign low implied probability to an early call, reflecting the absence of immediate catalysts and the administration’s emphasis on legislative continuity over dissolution before year-end.