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In a dramatic session of the Senate commission investigating the so‑called “Caso Koldo”, Prime Minister Pedro Sánchez admitted for the first time that he had received cash payments from his party, the Partido Socialista Obrero Español (PSOE). According to his own testimony, the payments were always under the €1,000 legal threshold, and he insisted they were made against invoices and fully traceable. He denied any illegal financing or “secret salaries”, firmly stating: “In the PSOE there are no envelopes of extra pay.” Sánchez explained that on “some occasions” he had settled expenses in cash, but maintained that these instances were exceptional and lawful. He categorically rejected associations between these payments and the broader accusations being scrutinised by the commission, including alleged illegal financing and improper conduct within his party. Opposition Ramps Up Demand for Accountability Feijóo warns Sánchez cannot continue in office Meanwhile, opposition leader Alberto Núñez Feijóo publicly declared that Sánchez “cannot continue governing” after what he described as repeated evasions during the hearing. Feijóo pointed to the many “no me consta” (“I have no knowledge”) and “no lo recuerdo” (”I can’t remember”) replies from the Prime Minister, accusing him of withholding explanations and undermining public trust. The opposition’s tone suggested that the revelations about cash payments have reinvigorated demands for higher political accountability. Sánchez’s five‑hour appearance at the Senate ended with tension, accusations and sharp rhetoric from both sides. The PM labelled parts of the interrogation a “circus” and defended his record, but the growing chorus of scrutiny indicates the political pressure is mounting. Legal Limits and Political Context Why payments under €1 000 matter The law in Spain sets a threshold of €1,000 for cash payments in business and public life to prevent money‑laundering and untraceable transactions. By admitting to payments below that threshold, Sánchez appears to stay technically within the law, but critics assert that the gesture may be undermined by broader questions of transparency. In his testimony, Sánchez emphasised that every transaction was backed by an invoice and processed within the party’s accounts. He rejected claims of hidden remuneration and insisted that party finance had followed conventional mechanisms. Nonetheless, the opposition views the admissions as opening a new chapter in the investigation into alleged undeclared money flows and potential corruption within the PSOE. What Happens Next The government’s stability now under question With the admission now public and the opposition turning up the pressure, the government’s majority and public image face serious stress. Sánchez must now rely on his parliamentary allies and internal party support to withstand the storm. The cash payments admission, though modest in scale, has gained symbolic importance, feeding perceptions of opacity and weakened credibility. Feijóo’s statement signals that the opposition believes the moment has arrived for regime change or early elections unless Sánchez offers stronger clarification or steps aside. For the Prime Minister, the choice is stark: rebuild public confidence and control the narrative, or face an escalating challenge to his leadership. Key Points: Sánchez admitted to receiving cash payments below €1,000 from the PSOE, always backed by invoices. He insisted there were no secret payments or illegal financing in the party. Opposition leader Feijóo declared Sánchez unfit to continue as Prime Minister following evasive responses in the Senate. While the cash payments are legally under the €1,000 threshold, they raise new questions about transparency and party finance. Sánchez now faces a test of political survival and must navigate intense scrutiny of his party’s internal finances. The Road Ahead From technical legality to political legitimacy Although Sánchez’s admission keeps him technically within legal boundaries, the broader issue now is political legitimacy. If the public perceives the payments as part of a culture of secrecy or informal cash practices, the government’s standing could erode further. The next few weeks are critical: new disclosures, further investigations and evolving parliamentary manoeuvres could determine whether Sánchez retains power or a broader shift in Spanish politics begins. Should Sánchez restore confidence, the case may pass without crisis. If not, the campaign for “repair and renewal” led by the opposition could gain momentum. This episode highlights that in modern politics, the smallest sums of cash can carry major consequences.
