In Spain, the latest meeting of the Council of Ministers was at risk of being disrupted due to fundamental disagreements between Sumar representatives and the Socialists. Issues related to citizen support amid the crisis triggered by the conflict in Iran became particularly urgent. For many Spaniards, this could mean possible changes to rental regulations and new restrictions for large companies, directly impacting household budgets and the stability of the real estate market.
From early morning, five Sumar ministers refused to enter the meeting room, delaying the start of the Council by more than two hours. The reason was their opposition to Pedro Sánchez’s proposed anti-crisis measures. Sumar insisted that the package include a freeze on rent prices, extension of current contracts, and restrictions on the profits of companies linked to energy and real estate. The Socialists, in contrast, proposed limiting the response to lowering VAT on electricity, gas, and fuel, which Sumar argued does not address the main problems.
Negotiations and political risks
Before the meeting began, Pedro Sánchez and Yolanda Díaz held urgent talks to seek a compromise. However, government sources noted that even if Sumar objects, they cannot block the adoption of measures—decisions in the Council of Ministers are made without a vote. The prime minister’s press conference, scheduled for 11:00, was also postponed due to the prolonged negotiations.
According to russpain.com, sources in Moncloa explain that Sumar’s demands cannot be included because passing the decree in Congress requires support from Junts and PNV. These parties have already made it clear they will not support measures banning evictions or automatically extending rental contracts, considering such steps excessive. Deputy Prime Minister and Finance Minister María Jesús Montero previously confirmed that the new package will not include an eviction ban or contract extensions, as there is no parliamentary majority for these measures.
Arguments of the parties and compromise proposals
The Socialists emphasize that only measures supported by a majority can currently be approved. They remind that attempts to introduce stricter social guarantees have already failed twice due to opposition from Junts, PP, and Vox. Junts, for their part, oppose automatic lease extensions and propose that the state cover housing costs for vulnerable families to avoid evictions.
As a compromise, PSOE proposed to cap annual rent indexation for contracts signed before the new housing law came into effect (May 26, 2023) at 2%. However, Sumar believes this is insufficient and continues to advocate for more radical steps. Sumar representatives, including Compromís deputy Alberto Ibañez, criticize the reduction of VAT on fuel without simultaneously introducing price caps and a windfall tax on energy companies’ profits, arguing that such measures benefit large corporations rather than ordinary citizens.
Impact on the market and political dynamics
Sumar emphasize that PSOE’s refusal to include housing measures is especially concerning against the backdrop of a projected rise in rental prices and increased mortgage payments due to foreign policy shocks. They remind that similar steps were previously taken in response to the crisis caused by the war in Ukraine, and believe that the current situation requires no less determination. According to Sumar, the government should show greater political will and seek compromises not only with centrists but also with the opposition.
In recent years, internal disagreements within Spain’s left-wing parties have repeatedly led to delays and disruptions in decision-making. For instance, there was a recent discussion about leadership struggles and the timing of transitions, which also affected the coalition’s unity — more about this can be found in our coverage on disputes within the country’s left-wing forces.
Context and latest developments
Issues of rental housing and tenant protection remain among the most pressing topics in Spanish politics. Over the past two years, the government has repeatedly tried to introduce additional safeguards for tenants, but faced resistance both from the opposition and certain coalition partners. In 2025, a similar situation arose during discussions on support measures for low-income families, when proposals to freeze rental rates were rejected due to lack of parliamentary backing. The impact of external crises, such as the war in Ukraine and the current conflict in Iran, only increases pressure on the housing market and compels authorities to look for new solutions.
