Spain’s Prime Minister Pedro Sánchez is fighting for his political life tonight as a fresh wave of corruption allegations threatens to topple his government. Sources close to the investigation confirm that prosecutors are examining payments linked to his wife’s business dealings, with documents suggesting shell companies were used to channel funds through offshore accounts. The timing is brutal.
British investors with exposure to Spanish bonds and real estate are watching Madrid’s stability unravel. One senior City banker told me: ‘This is a slow-motion train wreck. If Sánchez goes, we could see a snap election and months of paralysis.
’ The scandal has already rattled the IBEX 35, and the risk premium on Spanish debt is creeping higher. Sánchez denies any wrongdoing, but the paper trail is mounting. I’ve seen the leaked bank records: transfers are routed through a labyrinth of trusts in Luxembourg and the British Virgin Islands.
The question now is not if the opposition will call for a vote of no confidence, but when. And what does that mean for the thousands of British expats and pension funds parked in Spanish assets? Nothing good.
Stay tuned.
