Late Sunday, Pedro Sánchez met behind closed doors with party leaders and ministers after the government’s housing decrees failed in Congress. Tensions ran high. The message inside the PSOE was blunt: call early elections now.
The so-called “decreto Maricarmen” was intended to protect tenants at risk of eviction by investment funds. Its defeat exposed divisions among Sánchez’s allies and sparked public anger. Sánchez’s basic team now sees a rare chance to mobilize a discouraged left. The opposition, formed by PP and Vox and joined by Junts, blocked measures aimed at what the government considers a real social emergency.
Reuters reported that the first housing decree was rejected by 178 votes to 172. The second was defeated 184 to 166, with Junts joining PP and Vox in opposition.
Sánchez kept his official schedule for Monday and was still set to speak at the National Congress of Family Business in Madrid. People close to him say he is ready to announce his decision at any time. The King’s state visit to Finland is another factor: under protocol, the King must be informed before parliament is dissolved.
Inside La Moncloa, frustration is raw. Junts rejected the housing decree at the last minute, despite what government sources say had been a deal. The PSOE also blames the PP for refusing to abstain, even though it had previously backed anti-eviction rules. The sense of betrayal runs deep. The government has stopped trying to negotiate and is preparing for elections.
Legal teams are working quickly to determine whether the most urgent parts of the failed decrees, especially the anti-eviction rules, can be salvaged and passed again by the cabinet before parliament dissolves. If elections are called, the government retains full powers until the vote. It could so approve similar measures and send them to the Permanent Deputation, where Junts would have no veto. A progressive majority could push them through.
BBC and Euronews reported that the rejected decrees included a moratorium on evicting vulnerable households without alternative housing until December 31, 2030, along with stricter rules for short-term and room rentals. The official BOE publication confirmed that both decrees were formally repealed on the same day as the vote.
Other options have been floated. Some suggested delaying elections to force another vote and increase pressure on the right. But talks with Junts are dead. La Moncloa says trust has broken down, particularly with Carles Puigdemont’s amnesty coming up.
Once an election date is set, PSOE strategists plan to rally voters around a progressive agenda, promising tougher action on housing and a defense of public services. They accuse the PP of pushing privatization. The campaign will argue that only a larger left-wing majority can deliver on housing, education, health and social care.
The crisis has also affected other parties. Sumar is searching for a new leader after Pablo Bustinduy refused to run, a development reported earlier.
The machinery for early elections is already moving, and the government’s options are shrinking. Sánchez’s next step could shape his future and the direction of the left in Spain. He can act now and try to reset the political map, or wait and risk losing more ground. Pressure inside the PSOE is intense. Sánchez faces a decision in the coming days: whether to turn the setback into a new mandate or risk losing more ground through hesitation.
