**Spain's minority Socialist-led government under Pedro Sánchez has repeatedly stated its intention to complete the full legislative term ending in August 2027, with no announced plans or procedural moves toward dissolution.** Sánchez has publicly ruled out a snap national vote on multiple occasions in 2025–2026, citing the administration’s legislative record, economic indicators such as growth and employment gains, and the lack of an immediate parliamentary crisis that would compel early elections. The government’s fragile coalition—dependent on regional and smaller parties—has encountered repeated budget difficulties and faced mounting opposition pressure amid corruption investigations involving PSOE figures. However, no successful no-confidence motion has advanced, and smaller parties have shown reluctance to trigger one that could empower a PP-Vox alternative. Recent 2026 regional contests (including snap votes in Extremadura and Aragón tied to budget impasses, plus the May Andalusian election) produced rightward shifts but remained sub-national and did not precipitate a national dissolution. Traders appear to view these factors, combined with the prime minister’s explicit commitment to the 2027 timeline, as outweighing ongoing speculation fueled by the government’s parliamentary weakness. Resolution would require an official dissolution decree before year-end; absent that step, the market favors continuation of the current term.