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Spanish Parliament Rejects Emergency Housing Decrees as Protests Intensify

The parliamentary defeat could force Pedro Sánchez to call early elections.

Overview

  • Parliament voted down both emergency housing decrees on Friday, October 2, 2026, with the seven deputies from Junts per Catalunya joining the Partido Popular and Vox to deliver the decisive no votes.
  • The first decree would have extended an eviction moratorium for vulnerable households to 2030, limited speculative purchases by large investment funds and introduced fiscal incentives and taxes targeting tourist flats and Socimi (Spanish real estate investment trusts).
  • The second decree sought to make many rental contracts effectively indefinite through automatic renewal and allowed termination only for objective reasons.
  • Protests re‑ignited immediately after the vote, including expanded encampments at Madrid’s Puerta del Sol, widespread caceroladas and tenant unions calling for a general strike; the decrees had briefly suspended some scheduled evictions while in force.
  • The rejection exposes the fragility of Sánchez’s governing arithmetic, deepens disagreement over trade‑offs between tenant protections and incentives for owners, and creates immediate political uncertainty about whether elections will be called and how housing policy will be rewritten.