Police officers entered the Madrid headquarters of Spain's ruling Socialist Party (PSOE) on Wednesday to search for information about a potential illegal payments scheme, the Civil Guard said.

This comes as Prime Minsiter Pedro Sanchez's party is being buffeted by a series of graft allegations, includingallegations of impropriety by former Spanish Prime Minister Jose Luis Rodriguez Zapatero. 

The news has put pressure on Sanchez's government and prompted protests in Madrid over the weekend. The allegations impact several members of the PM's inner circle, including his wife and brother.

What did police say about the operation? 

Police were searching for meterial as part of a National Court probe into alleged corruption by a former party member involved in a state-run company, the Civil Guard told the Associated Press.

Investigators told various media outlets that they could only provide a limited amount of information pertaining to a secret and ongoing investigation. 

A PSOE spokeswoman told Catalunya Radio that the party was calm and cooperating fully with authorities.

The head of the main opposition conservative People's Party (PP), Alberto Nunez Feijoo, said Sanchez's government "stinks" of corruption and renewed his call for early elections. Protesters in Madrid had made similar demands over the weekend.

What did Sanchez say about the recent allegations against Zapatero? 

The searches follow less than a month after news of an investigation into former Prime Minister Zapatero, a close ally of Sanchez. It pertains to potential wrongdoing and kickbacks when arranging a 2021 bailout for the Plus Ultra airline amid the disruption to air travel caused by the COVID pandemic. 

Sanchez was in the Vatican for a meeting with Pope Leo XIV on Wednesday. He said he saw no reason to withdraw his support for Zapatero following the publication of new details about the information last week. 

"I think there is no sufficient reason, there is no reason to change that position," he told reporters at a Rome news conference. 

The case revolves around whether Zapatero used his influence to ensure the €53 million (roughly $61.5 million) bailout for the airline, and whether his family benefitted from it. The 65-year-old, prime minister from 2004 to 2011 and a PSOE mainstay, denies any wrongdoing or having received payments from Plus Ultra. 

The investigating judge alleges that Zapatero may have been part of a network of shell companies and behind-the-scenes lobbyists aiming to push favorable decisions through the Socialist government's channels.

Sanchez, prime minister since 2018, has in the past called the investigations against his wife and brother part of a "smear campaign" aimed at him. 

But amid protests in 2025, he asked for forigveness from the public in connection to investigations into a former minister of his and a senior party member for allegations they played a part in a kickback ring amid the COVID pandemic.

Edited by: Zac Crellin

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