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Spain's gambler PM Sanchez seeks to defy the odds again on a snap election - Headlines news and analysis from Global Banking & Finance Review
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Spain's gambler PM Sanchez seeks to defy the odds again on a snap election

Published by Global Banking & Finance Review

Posted on October 5, 2026

4 min read

· Last updated: October 5, 2026

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Spain's PM Sanchez Bets on Snap Election Amid Growing Housing Crisis

Political Gamble and the Housing Crisis

By Charlie Devereux and Victoria Waldersee

MADRID, Oct 5 (Reuters) - Spain's Socialist prime minister, Pedro Sanchez, on Monday lived up to his reputation as a political gambler by calling a snap election that surveys indicate will cost him his job and usher in a right-wing government.

But then, the 54-year-old has managed to remain in office for eight years without ever winning a majority in parliament.

His appetite for risk has led him to openly accuse Israel of genocide in Gaza, a charge it rejects, and to defy US President Donald Trump's demands that Madrid spend much more on defence and let the US use its airbases in Spain for its war on Iran.

His latest gamble - to bring the election forward to November 29 from next year - appears to be based on a calculation that anger over a mounting housing crisis will be directed more at his opponents than at his own party.

Sanchez Aims to Take Advantage of Housing Crisis

On Friday, his right-wing opponents blocked his attempt to answer protesters' anger over the eviction of 87-year-old tenant Maricarmen Abascal with a decree capping rents and blocking further evictions.

With thousands of activists camped in the capital outside the office of the Madrid regional government, led by the conservative People's Party, Sanchez could be trying to make the election a referendum on housing.

Shifting the Narrative

It could also shift the narrative from damaging headlines about his government's handling of a migrant crisis in Spain's North African enclave of Ceuta this summer, and investigations into alleged corruption in his party and influence peddling by his wife and brother. Anger still lingers, too, at an amnesty for Catalan separatists that allowed him to clinch a third term in 2023.

Analyst Perspective

"Faced with an inability to legislate on the issue of greatest public concern, the aim is to capitalise on social mobilisation," said political analyst Eduardo Bayon.  

"The logic is to transform a tangible problem into a choice between political blocs: 'This is what I am trying to do, but the right-wing parties are blocking me'."

Public Support for Housing Measures

Surveys indicate the housing measures rejected by the PP, Vox and the Catalan nationalists Junts have support across Spanish society. A 40dB survey for El Pais and Cadena Ser on Friday found that 68% of Spaniards, including a majority of PP and Vox voters, were in favour of capping rents to make housing more accessible.

Sanchez's Pledge

"In contrast to their (opposition parties') penthouses, their budget cuts and their subservience to the elites, our pledge to the people is for affordable housing, public services and social rights," Sanchez wrote on X on Monday. "Spain must continue to move forward, and to do so, we need the public to strengthen our position in parliament."

Sanchez Always Defying the Odds

Sanchez has defied the odds throughout his political career. He first grabbed power by leading a move to remove his conservative predecessor, Mariano Rajoy of the PP, in Spain's first successful no-confidence vote over corruption.

Progressive Bulwark Against the Far Right

In two subsequent elections, he has mobilised his base by pitching himself as a progressive bulwark against the far right returning to power for the first time since the end of Francisco Franco's 36-year right-wing dictatorship in 1975.

Snap Election Strategy in 2023

In 2023, he called a snap election after the Socialists performed badly in local ballots. It paid off: With no political party prepared to endorse Vox, Sanchez cobbled together an eclectic alliance to back him for a third term, even though the PP had won the most seats. 

Still, the chances of that happening look even slimmer than in 2023, with support for the Socialists and their minority coalition partners Sumar well below what it was then.

Long Game and Coalition Calculations

Sanchez could also be playing a long game, betting that, even if he does not win, he can wait in the wings as an effective opposition leader, said Lorenzo Bernaldo de Quiros, an economist and president of the consultancy Freemarket Corporate Intelligence.

Sanchez's Socialists are betting that, although a PP-Vox coalition government is now a possibility, it would be beset by policy conflicts, which has been the case in the four regional governments where the PP and Vox currently rule in coalition.    

"It is a government that (the Socialists) believe will not last," Bernaldo de Quiros said.

(Reporting by Charlie Devereux, Victoria Waldersee and Emma Pinedo; Edited by Aislinn Laing and Kevin Liffey)

Key Takeaways

  • Sanchez dissolved parliament on October 5 after opposition parties blocked emergency housing decrees, amid mass protests over evictions, including the high‑profile case of an 87‑year‑old tenant (elpais.com).
  • Polls indicate the Socialist Party (PSOE) is stuck around 28%, with left‑wing allies at about 8%, whereas a PP‑Vox coalition appears the only path to an absolute majority in the 350‑seat parliament (marketscreener.com).
  • A 40dB survey for El País and Cadena SER finds broad support—including among PP and Vox voters—for rent caps, eviction freezes, and expanding social housing, reflecting cross‑ideological backing for housing reforms (elpais.com).

References

Frequently Asked Questions

How has Pedro Sanchez maintained power in Spain?
Sanchez has remained in office for eight years without a parliamentary majority by forming alliances and capitalizing on crises.
How do Spaniards feel about rent caps and housing measures?
A 40dB survey found 68% of Spaniards, including many conservative voters, support capping rents for more accessible housing.

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