A new dispute over housing policy has flared up within the Spanish government. Deputy Prime Minister Yolanda Díaz announced her intention to submit a draft decree to the government’s economic committee, which would involve intervention in the rental housing market. This move comes in response to ongoing disagreements with the Socialists (PSOE), whom Díaz accuses of dragging their feet on addressing this pressing issue.
The issue of rental housing has become one of the main topics for the Sumar bloc, which Díaz leads in the government. Nearly two months ago, ministers from this alliance proposed a bill that would automatically extend around 300,000 rental contracts set to expire in 2025. However, the initiative has stalled, and the situation in the market continues to deteriorate.
Emergency situation
Sumar describes the ongoing situation as a ‘housing emergency.’ Rental contracts signed in 2020, at the height of the pandemic when prices plummeted, are now expiring. Over the past few years, rental costs have risen by 30–50%, leaving thousands of families on the brink of financial collapse. Minister of Social Rights Pablo Bustinduy recently cited alarming figures underscoring the scale of the problem.
Díaz does not hide her dissatisfaction with the socialists’ position. In an informal conversation with journalists, she openly criticized Economy Minister Carlos Cuerpo, calling his approach to housing issues “neoliberal.” She also pointed out disagreements with the PSOE regarding the taxation of real estate investment funds (Socimis).
Political disagreements
Tensions are rising within the coalition. Díaz aims to force the socialists to take a clear stance on housing by bringing the draft decree before the economic commission—this is the final step before submitting the document to the Council of Ministers. Sumar hopes that at this stage, it will become clear who is prepared to support the proposed measures and who will block them.
At the same time, Sumar is preparing its own budget proposal for the coming year. Díaz has promised to present it as early as next week, together with other coalition parties. According to several ministers, internal relations within the bloc are currently better than they were a few months ago, despite ongoing disagreements.
Legislative battles
Other major initiatives are also being discussed in Congress these days. Culture Minister and Sumar representative Ernest Urtasun commented on the agreement between PP, PSOE, and Junts, supported by Vox, PNV, and UPN, to toughen penalties for repeat offenses. Urtasun acknowledged that this decision was part of the coalition agreement, although it does not generate much enthusiasm within Sumar.
In the coming week, parliament is set to review several key bills, including those concerning labor and the social economy. It is expected that the social economy bill, which was previously blocked, may be approved in a committee session and immediately forwarded to the Senate.
The Future of Reforms
The fate of the law supporting dependent citizens also remains uncertain. Two amendments from PNV and Junts could result in the entire initiative being rejected if they gain support. Nevertheless, Minister Bustinduy has expressed cautious optimism, believing that Partido Popular is unlikely to back the Junts’ proposals and the bill will still pass the vote.
Overall, the coming weeks promise to be tense for the Spanish parliament. Issues of housing, social support, and labor reforms remain at the forefront, while the outcome of the votes could significantly reshape the balance of power within the ruling coalition.
Yolanda Díaz is one of the most prominent figures in contemporary Spanish politics. She serves as the Second Deputy Prime Minister and leads the Sumar movement, which unites left-wing and progressive forces. Díaz is known for her proactive stance on social justice, labor rights, and the protection of vulnerable populations. In recent years, she has become a key player in coalition government negotiations and is often the driving force behind major reforms.
