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Ally of Spanish PM threatens to derail housing decree as fury over evictions grows - Finance news and analysis from Global Banking & Finance Review
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Ally of Spanish PM threatens to derail housing decree as fury over evictions grows

Published by Global Banking & Finance Review

Posted on October 2, 2026

4 min read

· Last updated: October 2, 2026

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Spain Faces Political Showdown as Housing Decree Sparks Protests, Evictions, and Uncertainty

Government Housing Decree Faces Backlash and Political Turmoil

Parliamentary Struggles and Political Alliances

MADRID, Oct 2 (Reuters) - Spain's leftist government faced a bruising battle in parliament on Friday after an allied party opposed its plans to tackle a housing crisis stirring public protests, particularly over the eviction of an 87-year-old woman.

Junts, a Catalan region separatist centre-right party with seven lawmakers, argued that the proposals would exacerbate matters by reducing housing supply. 

They include a ban on evictions of vulnerable tenants until 2030, a two-year rent freeze extension for existing leases, and tighter rules for short-term rentals.

Spanish Prime Minister Pedro Sanchez's minority left-wing coalition government has 147 seats in the 350-seat chamber and relies on smaller parties, including Junts, to pass legislation.

Opposition parties also oppose the decree.

Key Proposals and Legislative Hurdles

A second decree, which would permit automatic and indefinite renewal of rental contracts and was one of the protesters' main demands, was already expected not to pass because it had not secured the minimum support required.

Junts parliamentary spokesperson Miriam Nogueras said the decrees would have the opposite effect of their intended aims. "Finding housing will become more difficult every day. Our responsibility is to provide certainty, not uncertainty."

She urged the government to work on a new one.

Public Outcry and Social Unrest

The Eviction That Sparked Nationwide Protests

The eviction of pensioner Maricarmen Abascal last week triggered protests across Spain, with many young people pitching tents in Madrid's central square and other cities for almost a week, bringing back memories of anti-austerity sit-ins sparked by the global financial crisis in 2008-12.

ANGER OVER HOUSING COSTS

Abascal's eviction unleashed anger over the cost of housing, with many young people living with parents past 30 years of age.

Rents have doubled over the last decade with average prices reaching €1,176 ($1,323) a month, equivalent to 98.7% of the average salary for a young person, according to the Youth Council of Spain.

"People have said ‘enough is enough’; this cannot go on. The housing problem must be resolved; structural measures must be taken, and this cannot continue," Abascal's lawyer, Beatriz Duro, said in an interview with Reuters on Thursday.

On Friday, hundreds of protesters marched from their encampment in Madrid to parliament.

"The mood here is one of disappointment. We were hoping the decree would be passed at the first attempt," said Emilio Anton, a protester at the camp.

"I’m almost certain we’ll carry on like this until there’s a final agreement or until they kick us out," he said.

Alicia del Río, a spokesperson for the Tenants' Union, said politicians were "not listening to society".

Political Implications and Future Outlook

Potential Snap Elections and Shifting Narratives

Elections are due next year, but Spanish media said Sanchez might call a snap vote for November if the main housing decree is not passed during Friday's session. 

It would be an opportunity for Sanchez to change a narrative that's been focused on the government's handling of the migrant crisis in Ceuta, said Alejandro Quiroga, a political scientist at the Complutense University of Madrid.

"Not only would the Government take the political initiative, but also, if Junts and the PP do indeed end up not voting in favour of the decrees, and elections are ultimately called for the end of November, this will also change the framework of the political debate," Quiroga said.

Additional Information

($1 = 0.8890 euros)

(Reporting by David Latona, Victoria Waldersee, Mireia Merino, Emma Pinedo and Jesus Aguado; Writing by Charlie Devereux, editing by Aislinn Laing and Xevi Fontdegloria)

Key Takeaways

  • Junts argues the decrees—eviction ban until 2030, two‑year rent extension, restrictions on short‑term lets—will worsen housing supply and prices (internazionale.it)
  • The eviction of Maricarmen Abascal prompted mass protests across Spain, echoing 2008‑12 anti‑austerity sit‑ins (apnews.com)
  • New decrees include extending Spain’s “social shield” against evictions to 2030, rent contract extensions, bans on vulture funds until 2028, but risk failing in Congress (elpais.com)

References

Frequently Asked Questions

What measures does the Spanish housing decree include?
The decree proposes a ban on evictions of vulnerable tenants until 2030, a two-year rent freeze extension for existing leases, and tighter short-term rental rules.
Why is the housing decree facing opposition in Spain?
The Junts party and other opposition groups argue the decree would reduce housing supply and make finding housing more difficult.
What triggered the recent protests over housing in Spain?
The eviction of an 87-year-old woman named Maricarmen Abascal sparked public protests and renewed focus on the housing crisis.
How have housing costs impacted young people in Spain?
Rents have doubled in the past decade, averaging €1,176 a month—nearly the entire average salary for young people, forcing many to live with parents into their 30s.

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