Headlines
Spanish PM's hard-left ally says she won't run in next national election
Published by Global Banking & Finance Review®
Posted on February 25, 2026
2 min readLast updated: February 25, 2026
Tags:Economy
Quick Summary
Spain’s Labour Minister Yolanda Diaz won’t run in 2027, weakening PM Pedro Sanchez’s left bloc. Polls and recent regional votes show PP and Vox gaining as the left remains divided.
Spain’s Leftist Deputy PM Yolanda Díaz to Skip 2027 National Race
Political and Economic Implications in Spain
MADRID, Feb 25 (Reuters) - Spain's hard-left Labour Minister Yolanda Diaz said on Wednesday she would not contest the next parliamentary election, expected in 2027, in a blow to Prime Minister Pedro Sanchez who will need the support of left-wing parties to secure a majority.
In a letter posted on social media on Wednesday, Diaz, 54, a chic lawyer who is also one of Sanchez's three deputies, said she would continue working to improve people's lives as a minister but would not be a candidate in the election.
Rightward Shift in Polls
Diaz gave no specific reason for the decision, which comes as opinion polls indicate a surge in support for Spain's conservative People's Party and for the far-right Vox.
Díaz’s Labor and Wage Record
Diaz, who founded a multi-party leftist coalition, Sumar, in 2023 and was once one of Spain's most popular politicians, is credited with substantially raising the minimum wage and reversing core elements of an unpopular labour reform to bolster economic growth.
Business Lobby Tensions
However, her relations with Spain's business lobby have progressively soured, and she failed to deliver on a promise to shorten the working week.
Her apparent exit from politics leaves an already fragmented left without a unifying standard-bearer at a time when Sumar has been weakened by internal splits and the anti-establishment Podemos has lost much of its former clout.
Aragon as Bellwether
Vox Regional Gains
Vox posted strong results in recent regional elections including in the northern Aragon region, seen as a bellwether indicating a broader rightward turn at the national level.
Prospects for a Unified Left
Earlier this month, an appeal from lawmaker Gabriel Rufian of the Catalan separatist party ERC and Sumar member Emilio Delgado to create a new unified front of left-leaning forces - including pro-independence groups - drew a sceptical response from many on the left.
(Reporting by Emma Pinedo; Editing by David Latona and Gareth Jones)
Key Takeaways
- •Yolanda Diaz said she will not run in Spain’s 2027 general election.
- •The decision is a setback for PM Pedro Sanchez, who relies on allied left parties for a majority.
- •Diaz is credited with raising the minimum wage and reversing parts of a previous labor reform.
- •Spain’s left is fragmented as Sumar faces internal strains and Podemos has lost influence.
- •Polls and recent regional results show momentum for the PP and far-right Vox.
Frequently Asked Questions about Spanish PM's hard-left ally says she won't run in next national election
1What is the main topic?
Spain’s Labour Minister and Sumar leader Yolanda Diaz announced she will not be a candidate in the 2027 general election, a move that weakens the left coalition backing PM Pedro Sanchez.
2Why does this matter for markets and policy?
The exit of a key left-wing figure heightens political uncertainty, potentially affecting Spanish reform momentum, labor policies and investor sentiment toward Spain and the euro area.
3Will Yolanda Diaz remain in government?
Yes. She said she will continue serving in the government to complete the current mandate, though she will not run as a candidate in the next national election.
