Spain has threatened to downgrade relations with Argentina after Javier Milei called the Left-wing prime minister “tainted” by his wife’s “corruption”.

The Argentine president hit out at Pedro Sanchez at a rally of hard-Right parties organised by Vox on Sunday.

Speaking of Mr Sanchez taking five days off his official duties to reflect on his continuation as prime minister after a Madrid court opened a preliminary investigation into Begoña Gómez over alleged influence peddling and corruption, Mr Milei remarked that this showed how socialism led to “abuses” with leaders who “bolted themselves into power”.

“Even when his wife is corrupt and he is tainted, he takes five days to think about it,” Mr Milei said to cheers and applause at the Europa Viva event in Madrid.

On Monday, the Socialist Party’s Mr Sanchez demanded an apology from Mr Milei.

If he did not receive one, “response will be commensurate with the dignity of Spanish democracy and the fraternal bonds that link Spain and Argentina, currently led by a president who, sadly, has let himself down,” Mr Sanchez said.

Earlier José Manuel Albares, the Spanish foreign minister, had said that Madrid would “take all necessary actions to defend our sovereignty” unless Mr Milei made a public apology.

For now Spain has recalled its ambassador from Argentina for consultation and summoned Argentina’s representative in Madrid to formally request an apology.

Mr Milei has yet to respond publicly to the row, but members of his administration have said that Spain should not expect the outspoken president to back down.

“I don’t know why so much offence has been taken. I don’t see why he should apologise,” said Guillermo Francos, Argentina’s interior minister.

Mr Milei’s spokesman, Manuel Adorni, said the Argentinian president would not be excusing himself for his remarks in Madrid, countering that the Spanish government itself owed an apology for criticism against the Argentinian leader.

Earlier this month Óscar Puente, the Spanish transport minister, made a quip about Mr Milei in which he suggested that the Argentinian leader appeared to have been “on drugs”.

That led to a furious response from Mr Milei, who took a swipe at Mr Sánchez over the allegations against Ms Gómez, as well as his “socialist policies that bring only poverty and death”.

It then emerged that Mr Milei was travelling to Spain’s capital to appear at the Europa Viva rally but would not be meeting any members of Spain’s government.

The Madrid rally was also attended by Marine Le Pen, the French hard-Right leader, with Giorgia Meloni, the Italian prime minister, and Hungary’s Viktor Orbán addressing the event via video.

While in Madrid Mr Milei did meet leaders of major Spanish companies, including Telefónica and the country’s two largest banks, Santander and BBVA, all of which have since condemned the Argentinian president’s attack on Mr Sánchez.

Spain and Argentina have traditionally enjoyed good diplomatic relations and have deep economic and business connections. This decade the two countries have reached agreements on energy, mineral resources and fighting organised crime, and Spain triggered a temporary exemption from EU import restrictions to buy grain from Argentina after Russia’s invasion of Ukraine.

Spanish officials have stressed that any action taken in retaliation for Mr Milei’s comments will not affect the more than 300,000 residents of Spain who were born in Argentina.