Junts shows itself "disappointed" by the housing decree laws, but Pedro Sánchez is "optimistic"

MadridThe Spanish government is optimistic, but the fact is that, 48 hours before the vote on the housing decrees in Congress, they still do not have guaranteed support. Neither for the first decree-law, with a broad battery of measures such as the suspension of evictions and tax incentives –already published in the BOE–, nor for the second, which automatically extends rental contracts, which will be officially published this Thursday. For the moment, the Spanish government only counts on the affirmative vote of EH Bildu and Esquerra, as announced by its president, Oriol Junqueras, although the spokesperson in Congress, Gabriel Rufián, has said that they will look at it down to the "last comma". Meanwhile, Junts, Podemos and the PNV maintain the uncertainty. In fact, it is with these two parties that the Spanish government has to perform the most juggling acts to satisfy their demands, which are very often contradictory. In parallel, the Tenants' Union has demanded that the groups validate both decrees.

In statements in the corridors of Congress, Miriam Nogueras gave an initial assessment: "We are disappointed and worried". "The two main objectives were to stop vulture funds and protect families. This decree-law does not stop them because they can continue buying", she declared. The leader of Junts in the Spanish chamber believes that the regulation on vulture funds falls short, since the Spanish government vetoes the purchase of properties to all investors who acquire apartments below 70% of the market price. Sources from Junts assure that their proposal consisted of directly prohibiting specific legal entities from carrying out these operations, such as banking entities, their subsidiaries or investment companies. The Spanish government justifies that the correct way to do it is through the decree and that this has been set by the Ministry of Economy, since there is no specific legal formula that identifies vulture funds.

However, this is not Junts' only reservation. They are also wary of the wording of the rule in different sections, such as the strengthening of the right of first refusal and housing. They consider that, as it is written, it leads to confusion about whether, in the event of the owner's death, the tenant's right to buy the apartment takes precedence over the inheritance. An interpretation that the Spanish government rejects.

Ultimately, even though they do not disclose what the direction of their vote will be, Junts believes that the decree law is not well-drafted and that the Spanish government should have written it with more calm and allowed the groups to study all the elements. According to Nogueras' party, the PSOE has yielded to the pressure of the left-wing parties and, at the last minute, introduced changes that they had not endorsed. For its part, the PNB also does not disclose the direction of its vote and says it will not be in the "trenches" but rather seeking agreements. Proof of this is that this Wednesday in Congress, Aitor Esteban, the current top leader of the Basque nationalists, was present.

Be that as it may, from the Moncloa they believe they have options to move forward with the new housing regulatory package. In an appearance alongside French President Emmanuel Macron, the Spanish President, Pedro Sánchez, downplayed the statements from Junts and assured that he is "reasonably optimistic." In fact, he considered that the housing legislative package will go ahead because it is no longer an "ideological" issue but one of "humanity." The Minister of Justice, Félix Bolaños, from Barcelona, asked "all Catalan deputies" to stand on the side of the people and not the vulture funds.

To convince Junts, sources from the Ministry of Housing highlight that regulating is only one part of the measures and acknowledge that it is necessary to increase supply, especially of affordable housing. In this sense, they argue that this can be achieved through tax breaks for landlords. "They are conditioned on making empty, disused, or affordable housing available [to the market]," they say. For example, large IRPF (income tax) deductions are included for landlords who lower the rent price (they can reach up to 100%) or compensation for landlords is provided if an eviction is suspended and the tenants remain in the apartment without paying the rent. However, the wording does not convince Junts, as it considers it unclear: from the outset, it leaves the payment of this money in the hands of the autonomous communities while the eviction is suspended. "We cannot criminalize the small landlord. And what about all the months they need the rent to pay the mortgage?" lamented the Secretary-General of Junts, Jordi Turull, on Catalunya Ràdio.

The position of Podemos

Podem, which has not specified what it will do either, has been critical of the fact that the decrees have been split up: "They have cheated. [...] Bring the complete decree as the Tenants' Union has asked you," said the secretary general of Podem, Ione Belarra, during this Wednesday's plenary session in Congress, which thus coincides with one of the criticisms of the movement for the right to housing. The Spanish government has split the measures into two decree-laws: one with all the measures that the parties had negotiated, and a second one with the indefinite extension of rentals, which is the main demand of the Tenants' Union and the left. The PSOE has decided to separate them because it believes that the first one has more chances of passing (they have been working on the measures with the groups for some time) than the second one.

"If the measures [of the housing decree] are not approved, there is no social shield until 2030, there are no limits on speculative buying, there is no control over seasonal or room rentals, nor savings for 1.6 million tenants," defended the first vice president and Minister of Economy, Carlos Cuerpo, this Wednesday in Congress, in response to Podem's criticisms. However, the party of Irene Montero and Belarra may be conditioned by what the Tenants' Union decides, which, although it considers the government's measures insufficient and intends to continue with the mobilizations, asks that both decree-laws be validated on Friday. "Either you vote in favor of life or in favor of speculation," summarized the spokesperson, Alicia del Río. Podem plans to meet with the Tenants' Union this Thursday afternoon. The PP, on the other hand, has revealed a position –they will vote against it– that was to be expected: "I will not support a deceitful government," said the popular leader, Alberto Núñez Feijóo, in the corridors of Congress this Wednesday.