Junts proposes tax relief and anti-eviction measures to Pedro Sánchez

The central government has resumed contact with Junts to approve a housing royal decree-law with urgent measures for the residential emergency during the upcoming Tuesday Council of Ministers meeting, provided an agreement is reached with all investiture partners. This legislative push follows intense political and social responses in Madrid and Barcelona over the eviction of Maricarmen, an 87-year-old resident, from her long-held home.

Negotiations and Parliamentary Strategy

Sources from Junts explained that the Ministry of Housing is currently reviewing proposals submitted by the Catalan formation. Late yesterday, those same sources expressed optimism about reaching an agreement, noting that the Socialists are open to adapting their solutions within a new decree. A previous version of the initiative lapsed in Congress last April, and subsequent attempts to pass it before the summer parliamentary break stalled due to a lack of support. Despite Sumar prematurely declaring the measure certain, La Moncloa paused the text and deferred consideration to September.

Junts delivered a specific legislative proposal directly to Prime Minister Pedro Sánchez fifteen days ago. The package includes tenant rental tax relief, mortgage deductions for small property owners, the reinstatement of traditional housing savings accounts for young people, and initiatives to accelerate new construction and mobilize the secondhand market. On anti-eviction measures, the party proposes suspending evictions in homes owned by vulture funds and prohibiting those entities from purchasing additional properties. Additional requirements include exempting elderly citizens who sell their homes to move into a nursing home from paying income tax on capital gains, and allowing families to cancel mortgages if banks sell the debt to another institution below the remaining liquidation amount.

Following months of government deadlock, the Ministry of Housing confirms ongoing negotiations with all investiture partners. This includes talks with Podemos, which has demanded the removal of modifications to the Land Law from the currently negotiated text.

Political Repercussions and Divergent Reactions

The eviction of Maricarmen has created an unprecedented political dynamic for the current legislative term. Speaking from New York after addressing the United Nations General Assembly on Wednesday night, Prime Minister Pedro Sánchez stated that the government will respond to what he termed a social tragedy, though he reiterated that success depends on securing an agreement with investiture partners. Sánchez remarked that if Parliament had approved the progressive coalition’s previous royal decree-law before the summer, Maricarmen would not have suffered her current situation after paying rent on her home for seventy years. He demanded responsibility and broad-mindedness from parliamentary groups, although doubts remain over whether the anti-eviction shield for vulnerable individuals would have prevented the specific enforcement action given that alternative options were reportedly offered.

Junts proposes tax relief and anti-eviction measures to Pedro Sánchez
Photo: elconstitucional.es

The outreach to Junts has generated friction among other government allies. Gabriel Rufián, the congressional spokesperson for ERC, criticized the executive’s reliance on Junts to establish the boundaries of housing policy. In statements posted to social media on Thursday, Rufián labeled the negotiation a mistake, asserting that the left-leaning parties should dictate terms rather than rely on a party he described as being at the service of real estate funds.

Did You Know? The previous housing decree backed by the government lapsed in Congress in April after failing to secure enough votes for convalidation before the parliamentary summer break.

Frequently Asked Questions

What triggered the sudden resumption of housing negotiations?
The central government revived talks with Junts following widespread political and social backlash in Madrid and Barcelona over the execution of a judicial eviction order against Maricarmen, an 87-year-old resident who lived in her apartment for seventy years.

Junts proposes tax relief and anti-eviction measures to Pedro Sánchez
Photo: elpais.com

What specific housing measures is Junts demanding?
Junts’ proposals include tax deductions on rent for tenants, mortgage relief for small property owners, the recovery of young-people housing savings accounts, measures to accelerate new construction, the suspension of evictions in properties owned by vulture funds, and tax exemptions for elderly individuals selling homes to enter residential care.

How are other parliamentary allies reacting to the talks?
Other allies, such as ERC spokesperson Gabriel Rufián, have criticized the government for negotiating housing policy limits with Junts, arguing that leftist parties should dictate housing terms instead.

How will these parliamentary negotiations ultimately reshape housing protections across the country?

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