Spanish Government Suffers Legislative Defeat on Housing Measures

Spain's progressive government faced a significant legislative setback Friday when Parliament rejected a package of emergency measures designed to address the nation's housing affordability crisis. The defeat, coupled with ongoing protests demanding aid for renters, has fueled speculation that Prime Minister Pedro Sánchez could call an early election.

During a five-hour parliamentary debate, Sánchez made a final appeal to lawmakers, describing the decrees as "necessary" to bring order and humanity to a market that, if left unchecked, "will destroy our society." His plea was ultimately unsuccessful, as the Catalan separatist party Junts joined the center-right Popular Party and the far-right Vox in voting against the measures. Protesters outside Parliament jeered the results, with some in the public gallery shouting accusations against vulture funds.

The rejected decrees aimed to halt evictions of vulnerable individuals, curb real estate speculation, and offer tax incentives for rental properties. A second decree proposed making residential leases automatically renewable by tenants. These measures were intended to quell public outrage, particularly after the recent televised eviction of an 87-year-old woman in Madrid, which triggered widespread protests and a continued occupation of the city's main square.

Protesters, some holding signs depicting vultures, blamed real estate speculators for driving up housing costs. Carla Cremonte, a 34-year-old office worker, expressed frustration that right-wing parties had voted against the interests of the majority of workers. She stated that while the future is uncertain, protests and calls for a general strike would continue.

The average rent in Spain has nearly doubled in the last decade, with the average price per square meter increasing from 8.20 euros in 2016 to 15.1 euros ($17.15) this year, according to the real estate website Idealista. The elderly woman whose eviction became a symbol of the housing crisis, Maricarmen Abascal, has been offered a return to her apartment by the company that evicted her, following immense public and political pressure. Abascal is currently hospitalized but her lawyer confirmed she is pleased to be going home.

Prime Minister Sánchez, who formed his current government in 2023 with the support of smaller parties like Junts, has found the separatists to be a challenging partner. Míriam Nogueras of Junts argued that the decrees would inadvertently lead to owners withdrawing properties from the rental market, further inflating prices, and stated that the measures still permitted speculators to acquire property and evict tenants. The government refused Junts' call for amendments.

Members of the center-right Basque party and the small Coalición Canaria also voted against the second decree after supporting the first. They criticized the government's decision to pursue action through decrees rather than through broader legislative negotiation.