Rejection of housing measures weakens the Sanchez government and raises the likelihood of elections in Spain

Prime Minister Pedro Sanchez’s government suffered a defeat in Parliament after lawmakers voted against two emergency housing decrees. Following the development, Spain could face an early election this autumn.

The first decree was rejected by 178 votes to 172, while the second received 184 votes against and 166 in favor. Pressure on Sanchez to call an early election has increased, with November 29 being mentioned as a possible date.

In Madrid, thousands of protesters continue to gather in Puerta del Sol. The Tenants’ Committee, which is organizing the protests, has announced rallies on October 3 in the capital and 22 other Spanish cities.

Speaking in Parliament, Sanchez said the decrees contained “no extremism” and urged lawmakers to consider the difficulties families face as rents rise. The People’s Party, the main opposition force, rejected this approach, saying the crisis should be addressed by building new homes rather than approving decrees.

Through the measures, the Spanish government aimed to curb speculation in the real estate market, the growth of tourist rentals, and evictions of people in need. One of the most controversial proposals was the automatic, indefinite extension of rental contracts.