Spanish government faces serious defeat in housing market decrees

Madrid. Spain's left-wing minority government under Prime Minister Pedro Sánchez is heading for a major defeat in the vote on two decrees to combat the current crisis in the housing market. Carles Puigdemont's conservative separatist Catalan party Junts announced on Thursday evening that it would vote against the two decrees, saying they would lead to a further shortage of supply and even higher rents.

There has already been speculation in Spanish media such as “La Vanguardia” that Sánchez, who is already under strong pressure because of the migration crisis in Ceuta and corruption cases, could call new elections in the face of another setback. It was unclear what would happen next with the demonstrations and the protest camp in Madrid for more tenant protection.

With his seven votes in parliament, Junts helped put the Sánchez government into the saddle after the election in July 2023, but withdrew his support almost a year ago and has since largely blocked the government's work, which is becoming increasingly incapable of action.

Ahead of the vote in Parliament in Madrid on the decrees scheduled for today, the Junts called on the government to cancel the meeting and immediately present new proposals. Since the conservative People's Party PP and the right-wing populist Vox also want to vote against the decrees, the government's defeat is certain. The government wants to stick to the vote. “The moment of truth has come,” Sánchez wrote on X.

On Tuesday, after the sensational eviction of an 87-year-old and massive protests, the government decided on an extensive package of measures to combat the housing shortage. Among other things, the plan included extended protection against evictions until 2030, stronger regulation of short-term rental contracts and the rental of rooms, a ban on the purchase of apartments by “vulture funds” until 2028, and tax breaks and incentives for tenants and landlords. A two-year extension of existing rental agreements that expire before December 31, 2028 is also planned.