According to analysts, the corruption scandal embroiling the Spanish government is the most damaging yet for Prime Minister Pedro Sanchez and for Spain as a whole. Beyond the potential political casualties, the scandal has highlighted systemic problems surrounding lobbying and contracting.

In June, a senior official from Spanish Prime Minister Pedro Sanchez’s Socialist party became the subject of an investigation, in one of several corruption cases linked to Sanchez’s circle. Pedro Sanchez came to power in 2018 after a successful no-confidence vote in Parliament against his predecessor, Mariano Rajoy. Though the two leaders represent opposite ends of the political spectrum, the threat that once loomed over Rajoy has now reached Sanchez as well, with repercussions for Spain’s economy.

Spanish companies operating in international markets have generally made significant strides in eliminating corrupt practices. This change was driven by the 2010 reform of the Spanish Penal Code, which introduced corporate criminal liability for certain crimes committed by employees or legal representatives, regardless of whether these occur in the public or private sector.

The Scandal Shakes Sanchez Government

One key takeaway from the current scandals is the lack of transparency in the use of intermediaries and lobbying services in Spain. The recurring incidents largely stem from structural issues, including a lack of strict regulations and independent oversight.

In 2024, a report by the Council of Europe’s anti-corruption body GRECO stated that Spain had made little progress on its 2019 recommendations, including those calling for lobbying legislation.

In response to the latest scandals, Sanchez recently introduced 15 anti-corruption measures, while Parliament is reviewing a new law on creating a national lobbying registry.

Spain’s fragile coalition government collapsed following the release of a bombshell report by the Guardia Civil, which uncovered an alleged corruption case linking Pedro Sanchez’s Socialist Workers’ Party (PSOE) to a “mafia-like” operation involving close allies and former cabinet members.

Santos Cerdan, a close ally of Sanchez and the PSOE’s third-ranking official, resigned after being accused of embezzling public funds. The scandal has now cast a negative light on the prime minister himself, as the anti-corruption investigation moves closer to Sanchez’s inner circle.

Parliament in Turmoil Over the Socialist Party’s Corruption Scandal

During one parliamentary session, a massive brawl broke out after mutual accusations and attacks erupted between Sanchez’s party PSOE, its coalition partners, and the main opposition parties, causing the debate to spiral out of control.

Sanchez reiterated that “immediate and strict measures” had already been taken against close allies accused of embezzling public funds, but responded angrily to a parliamentary comment, declaring that there was “no corruption” within his political camp.

MPs from the right-wing People’s Party (PP) pounded on their desks, shouting “Resign, resign!” demanding Sanchez’s departure, while Santiago Abascal, leader of the Vox party, walked out of the chamber, refusing to listen to Sanchez’s speech.

🇪🇸 „You are corrupt. You are a traitor. All of Spain knows it.”

Epic takedown of Pedro Sánchez in the Spanish parliament by @Vox_es‘ @Santi_ABASCAL, who accuses the Socialist prime minister of feeding corruption, betraying democracy, and handing Spain over to illegal migrants. pic.twitter.com/I7duTRO3It

— Remix News & Views (@RMXnews) June 18, 2025

“The Spanish people need to be saved from you, and what they are really waiting for is your letter of resignation,”

said Alberto Nunez Feijoo, leader of the People’s Party.

Sanchez reaffirmed his party’s zero-tolerance stance on corruption, again stating that “immediate and strict measures had already been taken” against close allies accused of embezzling public funds.

As the opposition intensified its attacks on the Socialist leader, junior coalition partners joined the People’s Party in demanding explanations for the series of corruption scandals plaguing the Socialist government.

Gabriel Rufian, spokesperson for the pro-independence Catalan ERC party, which supports the Sanchez government, stated that he does not want “a PSOE conspiracy like the Gurtel scandal,” referencing the corruption case involving Luis Barcenas, the former treasurer of the People’s Party, which shook Spanish politics during Mariano Rajoy’s government.