Spanish government fails with tenancy law reform

The package included, among other things, a moratorium on evictions until 2030 and the automatic extension of fixed-term rental contracts. In addition, transactions by investment funds, known as so-called vulture funds, should be banned in the housing market.

Opposition spokesmen accused the government of saying the proposed measures would reduce the supply of housing and drive up rents even further. The government had hoped until the end that the conservative Catalan separatist party Junts would at least agree to the first decree. Spanish media had previously reported that Sánchez could call early elections in November if the decree fails.

Recently there were nationwide protests that were sparked by the forced eviction from the apartment of 87-year-old Maricarmen Abascal. The pensioner, who had lived in her apartment in Madrid for 70 years, was carried out of the house on a stretcher after an investor increased her rent by 275 percent to 2,650 euros, according to the tenants' association. On Monday, her lawyer announced that she had reached an agreement for the senior citizen to return to the apartment.