Tenancy law | Spain: Heavy defeat for Pedro Sánchez

Spain's Prime Minister Pedro Sánchez was no longer able to prevent the defeat in the vote with his speech. Photo: AFP/JAVIER SORIANO The intervention by Spanish Prime Minister Pedro Sánchez, which was not on the agenda, has fizzled out. At the end of the parliamentary debate on Friday afternoon, the Social Democrat, who has been in power for more than eight years, implored MPs to put aside all party calculations and vote in the interests of the weakest in society: "Think of the millions of young people who cannot stand on their own two feet, of the families who live in fear because their rents are constantly rising, of the pensioners who face old age with terror because they do not have their own apartment, or of the thousands of Children who tomorrow could see their clothes, their backpack or their toys lying on the sidewalk because their parents have been evicted from their apartment.

Sánchez's appeal fell on deaf ears among opponents of the housing regulations approved last Tuesday, as did Housing Minister Isabel Rodríguez's appeal to Carles Puigdemont's liberal Catalan party, whose seven deputies reminded them that 90 percent of their proposals were included in the regulations. Nevertheless, Junts, which supports Catalonia's independence and gave Sánchez her votes, which would determine the absolute majority, in the 2023 prime ministerial election, stuck to the rejection. Junts spokeswoman Míriam Nogueras had previously confirmed that her party would reject the two regulations because "they allow the funds to continue buying, to continue speculating and to continue carrying out evictions."

The first decree stipulated that until 2030 there should be no evictions for tenants without alternative housing, as well as for older people, families with children and people with health problems. Until 2028, the so-called vulture funds should be prohibited from purchasing additional apartments, with a few exceptions. Landlords who hold back on rent increases should receive tax advantages. Short-term rentals should be limited to one month and subject to ten percent VAT.

A second decree, championed by the junior partner in the minority government, the Left Party Sumar, was intended to introduce permanent rental contracts. In contrast to Germany, Spanish rental contracts are limited to five or seven years.

The first regulation failed with 172 yes votes and 178 no votes, the second with 166 yes votes and 184 no votes.

Immediately after the rejection, the leader of the right-wing Popular Party PP, Alberto Núñez Feijóo, accused Sánchez of exploiting the housing issue for his electoral calculations and called on him to dissolve parliament and call early elections.

Sánchez's defeat on Friday has actually made it more likely that the new elections scheduled for mid-2027 will be brought forward. "If both decrees fail today, there will be 99 percent new elections," a socialist minister told the Catalan newspaper El Periódico in confidence. Another government member said he had “not much doubt” that elections could be called. »There is no easy starting point. “But one thing is clear: the current situation does not play into the right’s hands,” he added.

Apparently the Social Democrats see the housing crisis as an opportunity to convert anger and indignation into their own votes. So far, Sánchez has not given in to the opposition's demands for new elections. In previous surveys, everything indicated that the right-wing PP and the right-wing extremist Vox could together achieve a majority.

Sánchez could now flee forward with new elections. On Thursday he announced: “The moment of truth has come. PP, Vox and Junts have to decide: are they on the side of the social majority or on the side of the speculators? Tomorrow their voice will show entire generations what they stand for.«

Sánchez's reference to the "moment of truth" fueled speculation about a possible early parliamentary election. However, there is no clarity because Sánchez decides this step entirely for himself. "It's his decision, his alone," say government and PSOE circles. However, some members of the government believe that the political moment is appropriate and are making no secret of their position. »I don't know the date. But I have little doubt that we are heading towards elections,” an unnamed person from the cabinet told El Periódico.

The left-wing minority government decided on the emergency housing policy measures after the eviction of Maricarmen Abascal's apartment hectically and after a heated argument. For years, Sumar has wanted to push tenant protection further than Sánchez's Social Democrats.

After long negotiations, Maricarmen Abascal is allowed to return to her apartment near Retiro Park, but thousands more are threatened with evictions in Spain; The average was recently more than 40 per day.

The vote was accompanied by protests in front of the House of Representatives. After the first no vote, the demonstrators moved back to the Puerta del Sol square in the center of Madrid, which had been occupied for a week. There is an atmosphere of discontent and outrage on the streets, accompanied by calls for a “general strike.” In fact, many emphasize that the camp will not be disbanded until the required general strike is decided. Spain faces turbulent weeks ahead.

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