Spanish law enforcement agencies are intensifying their actions in connection with the growing scandal concerning irregularities in the sale of protected housing in Alicante and its surroundings. The Generalitat Valenciana is investigating, among other things, illegal reservation fees imposed on future tenants. Simultaneously, the judiciary is transferring the high-profile investigation into alleged corruption and mismanagement regarding the state aid for the airline Plus Ultra to the Audiencia Nacional, giving the case the status of a nationwide crisis.

Housing scandal in Alicante

Independent investigation into the collection of illegal reservation fees for protected housing in the municipality of Sant Joan d'Alacant and suspicions of corruption and nepotism in the allocation of properties.

Plus Ultra scandal in court

Transfer of the case concerning controversial public aid for the airline to the Audiencia Nacional due to links with the Koldo scandal and the degree of complexity.

Subsidies for rental bans

Barcelona introduces a new system of subsidies for housing communities that include a ban on tourist rentals in their statutes.

In the province of Alicante, a scandal is growing related to the alleged illegal distribution of protected housing. The latest reports indicate that in the town of Sant Joan d'Alacant, developers may have unlawfully forced citizens to pay reservation fees of 1,750 euros, which is strictly prohibited in the social housing system. The case has already been taken up by the specialized police unit UDEF, which is analyzing documentation handed over by the local town hall. Public outrage is intensified by the release of a video showing a luxury renovation of a social housing apartment carried out by the son of a councilor from the People's Party (PP), suggesting nepotism and the use of political connections to seize properties intended for the most needy. Meanwhile, in the country's capital, the judge leading the investigation into financial support for the airline Plus Ultra has decided to transfer the case files to the Audiencia Nacional. This was argued due to the "new dimension" and particular complexity of the case, which may be linked to the high-profile Koldo scandal. Investigators are examining whether the granting of 53 million euros in public aid to the controversial carrier was done in accordance with the law. The situation is further complicated by reports concerning former Prime Minister José Luis Rodríguez Zapatero. Allegations have emerged that reports intended to justify his high consulting fees were falsified or their authorship is doubtful, casting a shadow on the ethical conduct of former political leaders. This situation is becoming increasingly difficult for the current governing coalition. The Spanish real estate market has been grappling with systemic problems for decades, with roots reaching back to the bursting of the speculative bubble in 2008. Since then, the shortage of social housing has fueled numerous corruption scandals at the local level, where officials often decided on land allocations for construction.As part of the fight against the housing crisis in other parts of the country, the authorities in Barcelona have announced a subsidy program for housing communities that decide to ban tourist rentals in their buildings. This move aims to increase the supply of housing on the traditional long-term rental market and curb price increases caused by gentrification. On the business front, Ryanair has sharply criticized the airport operator Aena for monopolistic practices in introducing new routes from Valencia.

Mentioned People

  • José Luis Rodríguez Zapatero — Former Prime Minister of Spain, whose consulting income is the subject of controversy regarding the authenticity of reports.
  • María Jesús Montero — Deputy Prime Minister of Spain involved in reforming democratic memory legislation and compensation.