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Pensions and Housing Divide Parliament: A New Rift in the Spanish Government

Everything changed overnight — what secrets lie behind the urgent split decree on pensions and housing

The Spanish government is urgently shifting its strategy after setbacks in Congress. Pensions and protection from evictions have become the focal point of political bargaining. The decision could affect millions of families.

The issue of pension indexation and protection against evictions has once again become a central topic for millions of Spaniards. After the unexpected failure of the social decree in Congress, the government was forced to urgently seek a compromise to prevent a reduction in pension payments and avoid leaving vulnerable families without protection. The situation has become so tense that the fate of key social guarantees now depends on complex negotiations and political maneuvering.

Emergency measures

The Spanish authorities were forced to quickly return to amending the legislation to avoid another failure of the pension increase initiative. After Parliament rejected the previous proposal, the government decided to separate the controversial issues: the pension indexation would be put forward as a separate decree, while the discussion on extending the eviction moratorium would continue independently. This move is intended to allow for a quick decision on pensions, without delaying the process due to disagreements over housing policy.

The new text is scheduled to be reviewed at the upcoming Council of Ministers meeting. However, if negotiations are not completed in time, the discussion may be postponed until next week. Authorities assure there is enough time to ensure pensioners will not experience payment delays as early as February.

Political disagreements

President Pedro Sánchez has publicly pledged that pension indexation will be implemented regardless, even without opposition support. In recent days, the government has increasingly considered separating measures that face the least resistance from those that provoke heated debate—primarily those related to housing policy.

Parliamentary arithmetic leaves the government with little choice: despite a formal majority, it needs the backing of centrist and regional parties to pass key decisions. The most intense negotiations are with Junts and PNV. Both demand changes in the mechanism for protecting landlords: Junts insists on improving the compensation system, while PNV wants owners of a single rental property to be fully exempt from additional obligations.

Opposition Pressure

The opposition People’s Party (Partido Popular, PP) is not taking part in the talks directly, but continues to exert outside pressure. PP representatives say they will support pension indexation only if it is presented in a separate decree, without linking it to housing issues. The party’s Secretary General, Miguel Tellado, accused the government of ‘holding pensioners hostage’ to advance other initiatives.

The PP also criticizes the so-called ‘social shield’ for housing, calling it a tool to protect illegal occupants. The authorities, in turn, stress that the current regulations do not apply to such cases and are solely aimed at supporting vulnerable families.

Left wing

The left-wing parties in the coalition insist on maintaining the eviction moratorium. The Minister of Culture and Sumar representative Ernest Urtasun opposes separating pensions from other social support measures, but is willing to discuss adjustments to housing policy if it does not weaken family protections. He emphasizes that the government is working to ensure the new decree is adopted as soon as possible and is not prepared to sacrifice any social guarantees.

There are also tougher demands within the coalition. Representatives of Podemos and Izquierda Unida not only insist on keeping all measures, but also on making the eviction moratorium permanent. They propose that the state fully cover rent payments for families protected by the moratorium if negotiations reach another impasse.

What’s next

The government’s main task now is to prevent pension cuts in February. Officials assure that this scenario is not being considered. However, the question of extending the eviction moratorium remains unresolved: it will either be enacted as a separate decree or discussions will drag on indefinitely, with parliament continuing to set the terms.

In recent years, Spain has already faced similar situations. Last year, due to disagreements with Junts, the government had to split a major bill into two separate documents in order to ensure the indexation of pensions. At that time, negotiations continued until the early morning of the Council of Ministers’ session. Now, the scenario is repeating itself, but there is even less time for maneuvering, and political tensions are only rising.

The issues of pension indexation and protection against evictions regularly spark heated debates in the Spanish parliament. Over the past two years, the government has repeatedly resorted to splitting bills to avoid blocking key social measures. In 2025, a similar situation arose when discussing the aid package for low-income families: separate decisions also had to be made on the most contentious issues. This practice has become a routine part of Spanish politics, reflecting the complex coalition structure and the constant need to seek compromises between the interests of different groups.

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