Madrid (AFP) - The Spanish Parliament on Friday dropped two bills submitted by the government of Pedro Sanchez in an attempt to contain the housing crisis, dealing a setback to the Socialist Prime Minister and opening the door to an escalation of protests.

Published on: 02/10/2026 - 19:02

Hundreds of angry activists and protesters who were gathered outside the headquarters of the House of Representatives in Madrid chanted slogans of disapproval, including “What a shame!” when the voting results were announced, as an Agence France-Presse journalist noted.

They called for a "general strike" on the eve of new demonstrations scheduled in various parts of Spain on Saturday.

Minister of Social Rights, Pablo Bustendo, commented on the result of the vote, saying that the parties that rejected the two draft laws “committed a serious mistake.” He expected that "you will pay the price at the ballot boxes."

Dropping the two government projects represents a major setback for Pedro Sanchez a few months before the general elections to be held in 2027, even though he did his best to approve them despite his political team’s lack of a parliamentary majority.

“Forget the political calculations for a moment,” Sanchez said in a short, surprising speech from the parliament podium before the first vote of the afternoon.

The Socialist Prime Minister added, "I call on you to be courageous" and "be responsible."

However, the opposition, represented by the right and far-right, voted against the two legislative decrees presented by the government, as did representatives of the separatist “Jones Per Catalunya” (“Together for Catalonia”) party, which was an ally of Sánchez.

The "Jones" party, whose votes allowed Sanchez to assume the presidency of the government in 2023, demanded during the last hours the executive authority to withdraw the two projects and prepare new ones, but it did not receive a response.

"We have to keep fighting"

Agence France-Presse noted that a feeling of anger and disappointment permeated the demonstrators in Madrid.

David Yamas (26 years old), who still lives in his parents' house due to the "wild" rise in rental prices, tried to mitigate the impact of what happened, saying, "We were somewhat expecting this, but nevertheless, we have to continue the struggle."

Some activists gathered in front of the House of Representatives have been staying for about a week to demand the right to housing in a protest camp in Puerta del Sol Square, which attracts large numbers of tourists in central Madrid and is located hundreds of meters from the headquarters of the legislative authority.

Among the most prominent provisions of the two draft laws presented by the government on Tuesday was the automatic renewal of lease contracts upon their expiration, in addition to measures to limit the eviction of poor tenants.

The two government texts also targeted what are known as “vulture funds” or “vulture funds,” which are groups that acquire real estate at low prices with the aim of making huge profits from reselling them.

Elections before 2027?

This new parliamentary setback that Sanchez suffered soon raised questions about the possibility of moving forward the date of the next elections, scheduled to be held no later than the summer of 2027, but Sanchez has so far ruled out the possibility of early elections.

Santiago Abascal, leader of the far-right Vox party, which is considered the third most powerful Spanish party, said in a statement on Friday, "The earlier the elections are held, the better."

As for the leader of the "Popular Party" (centre-right), Alberto Nuñez Viejo, he also called for holding elections as soon as possible, considering that "it is unacceptable to exploit the housing problem for the purpose of maneuvering for electoral goals."

"We cannot continue like this," he added.

Providing affordable housing represents one of the most prominent social problems in Spain in recent years, but the protests took on a broader dimension after elderly tenant Maricarmen Abascal was forced to leave the apartment in which she had lived for 70 years after a company took over the property and raised the rent by 275 percent, which sparked a massive wave of anger.

Activists defending the right to housing took action, setting up protest camps in central Madrid and other cities, and making this 87-year-old woman a symbol of the housing crisis.

Spain, with a population of 50 million people, suffers from a gap between demand and new housing, and the Central Bank estimates the shortage at about 700,000 units.

© 2026 AFP

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