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PP warns housing decrees put €2.5bn in EU funds at risk

PP warns housing decrees put €2.5bn in EU funds at risk RUSSPAIN.com © russpain.com
PP warns housing decrees put €2.5bn in EU funds at risk © russpain.com
Spain's Partido Popular says the housing package is too weak and too vague. The opposition also warns that €2.5bn in European recovery funds could be lost if promised reforms are not completed.

The Cabinet approved the two housing decrees, known as the 'decreto Maricarmen', before the opposition had access to the full texts. The PP warns that Spain could lose €2.5 billion in European recovery funds if it fails to complete reforms promised to Brussels or if those reforms fall out of compliance. The Cabinet also extended fuel discounts linked to the war in Iran. The PP has not said how it will vote when Congress considers the measures on Friday.

Juan Bravo and Alberto Nadal say the Government gave Parliament too little information for proper scrutiny. They claim Housing Minister Isabel Rodríguez acknowledged at a press conference that she did not yet have the definitive text. Moncloa says Prime Minister Pedro Sánchez has urged political parties to show "common sense and responsibility" and support the emergency housing package.

The package takes its name from the case of 87-year-old Maricarmen, who was evicted. Government statements and European media reports presented the incident as a trigger for faster action amid public pressure over housing insecurity.

The PP's objection goes beyond timing. It says it cannot assess basic provisions because the Government has not clearly defined terms such as "vulture fund" and "speculative purchase".

Those definitions matter. The proposal would bar such funds from buying homes until 2028. It would extend protection against evictions until 2030, while existing rental contracts would run until 2028. The Government says the package would protect vulnerable households and curb speculation in the housing market.

The PNV had already raised concerns about the treatment of small landlords in an earlier housing report. The PP's current objection is narrower, focusing on the missing final document and the scope of the restrictions.

Bravo mocked the timetable, saying the Government was trying to fix in four days what it had failed to resolve in eight years. Ester Muñoz had made the same argument earlier that day. Their comments set up a difficult parliamentary fight before the decrees reach the floor.

The Government has no reliable majority in Congress, leaving both measures facing a real approval test. Reports on the negotiations said ministers had previously postponed the housing package because they lacked guaranteed votes.

The second housing measure appears more exposed. It would introduce automatic renewal of rental agreements. The PP has put forward a ten-point plan instead, calling for faster licences and the use of all available public land. Under its proposal, construction could start within four years. It also calls for lower VAT and property transfer tax on first-home purchases.

The PP is also attacking the fuel package. Bravo and Nadal say the discounts are less generous than those introduced in March. The new support will be reduced progressively until December. They also say the Government adopted none of the PP's proposals. The party still refuses to disclose its final voting position.

The European funds warning was expected to lead the PP briefing, as the Government is due to request the final €25 billion recovery payment on Wednesday. The opposition says Spain could lose €2.5 billion if it fails to complete reforms promised to Brussels or if those reforms fall out of compliance.

The €2.5 billion figure is disputed and reflects the PP's claim, not a confirmed finding by the European Commission. Some reports put the estimate at €2.46 billion. The PP also says the recovery plan has helped keep the Government operating without a general state budget.

For households, the immediate question is whether rental protections and fuel support will survive the vote. The Government faces a more direct problem: it must defend measures that, information from the opposition, were not available in final form even to one of the ministers presenting them.

The package has sparked disputes over housing costs and evictions, as well as home purchases and fuel costs. The PP calls it insufficient and opaque. Congress must decide whether the opposition's case is strong enough to defeat the measures.

As reported by the Associated Press-linked Anadolu Agency, Sánchez has urged Parliament to support the emergency housing measures. The coalition has no guaranteed majority.

Richard Reid RUSSPAIN.com
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Richard Reid

Richard Reid is the News Editor at RUSSPAIN.COM. He oversees editorial standards, source review and corrections and writes across general news, including politics, economics and social affairs.