The governance of the State

Increased pensions and "protection" for small property owners: this is how Sánchez's two new decrees stand.

Moncloa secures the support of the PNV, remains attentive to Junts, and infuriates Podem

Pedro Sánchez
3 min

MadridFollowing the veto by Junts and the PP on the omnibus decree that included pension increases and a suspension of evictions for vulnerable families, the Spanish government has been forced to fragment it to salvage the increase in pensioners' purchasing power and, on the other hand, has introduced measures to benefit small property owners, all while winking at Junts. "They are all good measures," defended the Spanish government spokesperson, Elma Saiz, downplaying the backtracking the Spanish government has had to make: despite what it had previously stated, after last week's setback in Congress, it has had to separate pensions—which Junts and the PP guarantee support for—from the social safety net, "where it has also counted on" its partners.

What are the changes? While the ban on evicting vulnerable families remains in place, exceptions have been introduced that exclude homeowners with one or two properties from this provision. In these cases, the relevant social services will be responsible for finding alternative housing, although they are overwhelmed in Catalonia. Another exception is also established: if individuals own three or more properties (and are not large-scale landlords—five in the case of Catalonia in high-demand areas), the eviction will not be halted if the owner is in a vulnerable situation. What does "vulnerable situation" mean? It was defined in the first social safety net decree following the pandemic and implies that the total income of the family unit in the month prior to the application does not exceed three times the monthly Public Indicator of Income for Multiple Effects (IPREM). That is, three times €600, which is the monthly IPREM for 2026: €1,800 gross per month.

The new features of the decree

When are evictions suspended?

  • General rule for the suspension of evictions

    The suspension of evictions for vulnerable families is guaranteed in the case of owners who own more than three apartments.

  • Exception for owners of more than three floors

    Evictions will not be suspended for vulnerable families if there is a prior rental agreement (i.e., it is not squatting), the landlord owns more than three properties but is not a large-scale landlord, and the family is in a vulnerable situation. It's important to note that the definition of a large-scale landlord is not the same throughout Spain. In Catalonia, in high-demand areas, a large-scale landlord is defined as someone who owns five or more properties. In the rest of Spain and in low-demand areas, the definition is ten or more properties.

  • Exception for owners of one or two floors

    The eviction of vulnerable families who fail to pay rent will proceed in the case of landlords who own one or more properties. In such cases, social services will be responsible for finding alternative housing.

Yesterday, the members of the Basque Parliament assumed that some measure would be incorporated to try to satisfy them, and this Tuesday the Basque Nationalist Party (PNV) announced an agreement with the Spanish government that would align with the position defended by Carles Puigdemont's party. "They are allowed to regain the possibility of renting their apartments, preventing further months of non-payment," the PNV explained regarding the exception introduced for small landlords, warning of the risk that, otherwise, these small landlords will become "new vulnerable citizens." "These changes are to build consensus," Elma Saiz said regarding the new social safety net measures. As these are two decree-laws, they come into effect immediately upon publication in the Official State Gazette (BOE). However, they will have to be ratified by Congress within a month to avoid lapse. The pension increase is guaranteed, but right now it is unclear what will happen with the social safety net.

It has the support of the Basque Nationalist Party (PNV), but it's still up in the air whether Junts will support it. Sources at La Moncloa (the Prime Minister's residence) acknowledge that they haven't spoken with Míriam Nogueras's party—they haven't negotiated directly since their falling out—but they assume that the measures agreed upon with the Basque nationalists could work for them. "It's a band-aid," Nogueras reacted on La Sexta, adding that they will study the fine print.

The problem for the Spanish government is that the decision hasn't been well received by the left: Podemos's general secretary, Ione Belarra, has criticized the new social safety net decree: "Poor things, they only belong to the wealthiest group in our society. Absolutely disgusting," the general secretary of the purple party told X. Podemos MEP Irene Montero reinforced this idea, arguing that the measure "speeds up evictions" and lamenting the talk of "protecting landlords instead of families." "If you govern by siding with the right wing, you're surprised when they win," she concluded. One of the concerns raised by the left is that the exception for small landlords leaves the protection of the 60,000 families who, according to them, benefited from the eviction moratorium up in the air. By excluding small landlords from the measure, how many evictions will still be possible? Spanish government sources are not providing figures at this time.

Two separate votes

Sumar, the junior partner in the Spanish government coalition, acknowledges that the negotiations of the last few hours were "intense" and, in fact, were finalized this Tuesday morning during the Council of Ministers, as confirmed by Sumar spokesperson and Minister of Culture, Ernest Urtasun, in a statement to the media. The party, led by Yolanda Díaz, is pleased that the social safety net has been maintained in a single decree and that pensions will finally be addressed separately—at one point, the possibility of issuing three separate decrees had even been considered. For Sumar, unlike Podemos, the changes to the anti-eviction measure are minimal, and they are satisfied that it goes hand in hand with the rest of the so-called social safety net approved during the pandemic: from utility assistance for vulnerable families to aid following the DANA storm. In this way, they believe that the PNV and Junts will not be tempted to oppose the other social measures included in the decree. This strategy, in any case, also puts Podemos in a difficult position: will Ione Belarra's party oppose the entire social safety net because they disagree with the exceptions for small property owners introduced to appease Junts and the PNV? The answer will come within a month at the most, in the Congress of Deputies.

The fine print

Pension Decree

2.7% increase for pensioners

The increase in contributory pensions remains at 2.7%, which, according to the Spanish government spokesperson, translates to an average of €50 more per month for retirees. Non-contributory pensions will also see an increase of 11.35%. Furthermore, this decree maintains the exemption for unemployment benefit recipients from filing an income tax return.

Social shield decree

The anti-eviction measure and twenty more

The social safety net decree includes the suspension of evictions, with exceptions agreed upon with the Basque Nationalist Party (PNV), and up to twenty other measures related to the DANA storm and aid for the most vulnerable. Specifically: the extension of the energy social voucher and the provision of water and energy supplies until December 31; the continuation of the ban on layoffs for companies receiving public aid; tax incentives for electric vehicles; exemption from personal income tax (IRPF) for compensation for personal injuries in forest fires; extension of DANA storm relief; and income tax deductions for home energy efficiency improvements.

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