Spanish Government Faces Political Uncertainty After Housing Vote Defeat
Lawmakers reject key measures aimed at addressing the housing crisis, increasing pressure on Prime Minister Pedro Sánchez.
Spain's Congress has rejected two government decree-laws intended to tackle the nation's housing crisis, a significant legislative defeat for Prime Minister Pedro Sánchez that has heightened speculation about a potential snap election. The votes, which occurred amidst protests outside the parliament building, saw the government fail to secure the necessary support for measures designed to protect tenants.
The first decree-law was defeated by 178 votes to 172, and the second by 184 to 166. These decrees required parliamentary approval to remain in effect and included initiatives such as suspending evictions for vulnerable tenants until 2030, extending rental leases, increasing taxes on tourist properties, and restricting purchases by investment funds. The second decree also proposed the automatic renewal of rental contracts, a key demand from tenant advocacy groups.
The government's minority status in Congress, lacking a clear majority, was underscored by the vote. The outcome has intensified discussions about whether Sánchez, whose Socialist party is part of a left-wing coalition, might dissolve parliament and call an early general election, with elections not originally scheduled until next summer. Sources indicated that the government would assess its next steps over the weekend.
The defeat comes as Sánchez's administration has been navigating a series of scandals and judicial investigations involving his party and close allies. Protesters, who had gathered outside Congress chanting slogans against the housing crisis, expressed anger following the announcement of the vote results.
The Sindicato de Inquilinas (Tenants' Union), a group coordinating protests, announced it would shift its focus from central Madrid to neighborhood-level organizing. Protesters are also calling for a general strike.
The government had hastily drafted the decree-laws in response to widespread social unrest, including the high-profile eviction of an 87-year-old woman, Maricarmen Abascal, from her home. "Today is about defending an international oligarchy which is extracting the rent from salaries earned with the effort of working classes of this country in order to share it out with dividends and they don't even pay taxes in Spain," said Social Affairs minister Pablo Bustinduy, criticizing opposition to the decrees. Prime Minister Sánchez had urged lawmakers to approve the measures, describing them as "necessary" to bring order and humanity to the housing market.
Opposition parties, including the conservative People's Party (PP) and the far-right Vox, had already declared their intention to vote against the proposals. The government's reliance on smaller nationalist parties proved insufficient, as the pro-independence Together for Catalonia (JxCat) signaled its opposition, citing concerns that the decrees were rushed and lacked rigor. JxCat representative Miriam Nogueras argued that the measures would allow speculation to continue and evictions to persist, potentially leading to the opposite of their intended effect. The political right contended that government intervention would discourage homeowners from renting out properties, thus further increasing prices.