Spain approves urgent housing decrees and 10 billion euro loan package before snap vote

Decrees approved after street unrest

Spain's Council of Ministers approved two urgent housing decrees on Tuesday following street clashes in Barcelona and demonstrations across the country over the weekend. The protests began after the eviction of an 87-year-old woman in Madrid and expanded into wider unrest over living costs. In Barcelona, where severe weather had forced organizers to postpone their demonstration to Monday night, tens of thousands took to the streets before groups of demonstrators threw stones and set fire to rubbish containers. Prime Minister Pedro Sánchez moved the measures forward four days after Parliament rejected an earlier version of the housing package on Friday, leading him to dissolve the legislature and call snap general elections for 29 November.

Credit lines and tenant protections

The first decree takes effect immediately to halt pending evictions and includes a 10 billion euro credit line offering zero-interest loans of up to 50,000 euros for first-time home buyers with steady incomes but no personal savings. The decree also extends eviction protections for vulnerable households until 2030, regulates individual room rentals, introduces a tax on seasonal rentals, and bans speculative purchases while providing tax relief to landlords. The second decree, which proposes indefinite lease extensions for existing tenants, will not take effect until the legislature votes on it. Sánchez stated during his press conference that the property market requires direct public intervention.

Sánchez explained his decision to call the election after lawmakers defeated the previous package.

I am convinced that if the majority of Parliament turns its back on citizens on an issue like housing, citizens must choose a new Parliament.

Parliamentary path through the interim committee

Because Parliament is dissolved, the government will submit both decrees to the Diputación Permanente, the interim legislative body that retains authority until the new parliament convenes. The governing coalition needs the Basque Nationalist Party (PNV) to vote in favor to validate the measures and bypass the combined opposition of the Popular Party, Vox, and Junts. Sánchez affirmed that his administration will continue using executive decrees until election day on 29 November. Labor unions CCOO and UGT announced plans for a 24-hour general strike later this autumn to demand wage increases and housing access.

Opposition reaction and election dispute

Opposition leaders criticized the measures and framed the decree approvals as an electoral tactic from the prime minister. Vox parliamentary spokesperson Pepa Millán rejected the government's approach during a press briefing.

On November 29, what is at stake is whether Sánchez continues to use all Spaniards to shield himself or whether we can build a new and decent Spain.

Popular Party spokesperson Ester Muñoz said her party understands citizen distrust regarding mail-in ballots while maintaining confidence in postal workers. Meanwhile, the leader of the regional government of Aragon, Jorge Azcón, stated he bought travel tickets so his children will vote in person in Zaragoza rather than by mail. The Popular Party also requested that judicial authorities investigating the Leire Díez case question the Socialist Party over alleged financing practices.