In a major legislative defeat that has thrown Spain's government into deep political uncertainty, the country's Congress has rejected two critical emergency decrees designed to address the nation's soaring housing crisis. The parliamentary vote has significantly intensified the pressure on Socialist Prime Minister Pedro Sánchez, fueling widespread speculation that he may be forced to call a snap general election ahead of schedule.
The rejection of the housing measures followed intense public anger and mass demonstrations triggered by the eviction of Maricarmen Abascal, an 87-year-old woman, from her long-term apartment in central Madrid. Abascal was evicted after she was unable to pay a sharp rent increase imposed by Urbagestión, the company that owned her flat. While intense public backlash eventually forced the company to negotiate her return on a low rent, the case galvanized a broader national movement demanding affordable housing and rent controls.
In response to the social unrest, Sánchez's left-wing coalition government hastily drafted two decree-laws in an attempt to defuse the protests. However, because the decrees were issued as emergency measures, they required formal parliamentary approval to remain in effect.
On Friday, the minority government failed to secure the necessary support. Members of Congress rejected the first decree by a vote of 178 to 172. The second, more contentious decree was defeated by a wider margin of 184 to 166. Outside the parliament building, hundreds of demonstrators gathered to watch the debate, and the atmosphere turned hostile as the results were announced. Angry protesters chanted "shame on you" and "your profits, our misery" at lawmakers.
The first defeated decree included several major initiatives: a suspension of evictions for vulnerable tenants until 2030, a two-year extension for rental leases set to expire before 2028, tax hikes on tourist apartments, and restrictions on the purchase of residential properties by what the government describes as "vulture funds." The second decree went further, proposing the automatic renewal of rental contracts, which has been a core demand of the Tenants' Union (Sindicato de Inquilinas) and other left-wing organizations.
Because Sánchez's coalition does not command a majority in Congress, the government was heavily dependent on smaller regional nationalist parties from Catalonia and the Basque Country. While the conservative People's Party (PP) and the far-right Vox had already declared their opposition, the decisive blow came when the centre-right, pro-independence party Together for Catalonia (JxCat) signaled its opposition on the eve of the vote.
The debate preceding the votes was highly charged. Moments before the ballots were cast, Prime Minister Sánchez made a last-ditch plea to the chamber. "I don't ask you, I beg you to be brave and consistent," Sánchez said. "Because they are not just ambitious measures, they are necessary." He warned lawmakers of the consequences of inaction, urging them "to put order and humanity into [the housing] market, because if we don't, it will bring down our society."
Social Affairs Minister Pablo Bustinduy, representing the junior coalition partner Sumar, also framed the vote in dramatic terms. "Voting against these decrees today means defending the interests of this oligarchy and turning your back on your own people," Bustinduy argued.
However, opponents of the laws strongly criticized the government's approach. Miriam Nogueras of JxCat argued that the decrees were rushed and lacked necessary rigour. She contended that the measures "will allow [vulture] funds to keep buying, keep speculating and evictions to keep happening," warning that they "would provoke the opposite effect of what they aim to achieve." On the political right, Juan Bravo of the PP argued against state intervention, stating that "housing doesn't get cheaper with decrees, it gets cheaper with more homes." Right-wing politicians have consistently warned that such regulations scare off property owners, leading them to withdraw homes from the rental market and ultimately driving prices up.
The defeat leaves Sánchez's administration highly vulnerable, especially as it already faces a series of political scandals and judicial investigations involving the Socialist Party and its close allies. Sources told Spanish media that government officials will spend the weekend evaluating their next steps, including whether to dissolve parliament and call an early general election, which was otherwise not due until next summer.
Despite the legislative failure, housing activists are not backing down. During the congressional debate, the Tenants' Union announced it was ending its tent occupation in central Madrid to shift its strategy. The group stated it plans to "take the struggle to all the neighbourhoods, residential blocks and homes of Madrid, wherever there are rental increases, expulsions and abuses each day, and turn the energy of the last few days into a permanent organisation." Activists continue to call for a general strike over the housing crisis, with further protest marches planned across Spain over the weekend.
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