Pedro Sánchez is on the verge of announcing snap elections after the government’s housing decrees collapsed in Congress. Most PSOE leaders and ministers now see early elections as the only viable response to the political setback and public anger.
Late Sunday, Pedro Sánchez met with party leaders and ministers behind closed doors. The mood was tense. The government’s housing decrees had just failed in Congress. Inside the PSOE, the message was blunt: call early elections now.
The so-called “decreto Maricarmen” was meant to protect tenants at risk of eviction by investment funds. Its defeat did more than expose cracks among Sánchez’s allies. It set off public anger. The core team around Sánchez now sees this as a rare chance to wake up a discouraged left. The opposition—PP, Vox, and Junts—blocked measures aimed at a real social emergency. That stung.
The first housing decree was rejected by a narrow margin of 178 to 172, while the second was defeated 184 to 166, with Junts joining PP and Vox in opposition.
Sánchez kept his official schedule for Monday. He was still set to speak at the National Congress of Family Business in Madrid. But people close to him say he is ready to announce his decision at any time. There’s another factor: the King’s state visit to Finland. Protocol says the King must be informed before dissolving parliament.
Inside La Moncloa, frustration is raw. Junts rejected the housing decree at the last minute. Government sources say there had been a deal. The PSOE also blames the PP for refusing to abstain, even though they once backed anti-eviction rules. The sense of betrayal is real. The government has stopped trying to negotiate. Now, it is preparing for elections.
Legal teams are working fast. They want to know if the most urgent parts of the failed decrees—especially the anti-eviction rules—can be saved and passed again by the cabinet before parliament dissolves. If elections are called, the government keeps full powers until the vote. That means it could approve similar measures and send them to the Permanent Deputation. Junts would have no veto there. A progressive majority could push them through.
According to BBC and Euronews, the rejected decrees included a moratorium on evictions of vulnerable households without alternative housing until December 31, 2030, as well as stricter rules for short-term and room rentals. The official BOE publication confirmed the formal repeal of both decrees on the same day as the vote.
Other options have been floated. Some suggested delaying elections to force another vote and put more pressure on the right. But talks with Junts are dead. La Moncloa says trust is broken, especially with Carles Puigdemont’s amnesty coming up.
Once an election date is set, PSOE strategists plan to rally voters around a progressive agenda. They promise tougher action on housing and a defense of public services. They accuse the PP of pushing privatization. The campaign will focus on one idea: only a bigger left-wing majority can deliver on housing, education, health, and social care.
The crisis has hit other parties too. Sumar is now searching for a new leader after Pablo Bustinduy refused to run. That was reported earlier.
The machinery for early elections is already moving. The government’s options are shrinking. Sánchez’s next step will shape his own future and the left’s direction in Spain. The housing defeat has made the stakes clear. He can act now and try to reset the political map. Or he can wait and risk losing more ground. Inside the PSOE, the pressure is intense. The coming days will show if Sánchez can turn this setback into a new mandate—or if hesitation will cost him everything.
