The rent decree-law is played out in Congress this Tuesday. An unusual day to vote on decree-laws, for which Thursday is reserved, as well as for all other initiatives that come from the Government.
In its strategy to maximize its effects in case of repeal, the Executive decided to hasten the life of the norm before its more than probable repeal and to squeeze the one-month period from its entry into the Chamber.
The Government faces the vote as the vast majority of them in Congress. It does not have the votes, due to opposition from PP, Vox, and Junts. With a substantial difference from others. The future of one million rental contracts is being decided at a time when concern about housing is at its peak.
What is at stake?
The automatic extension (and without increases) for a maximum of two years of rental contracts expiring this year and next, and a limit on rent increases of 2% during this period.
The measure seeks to prevent the expiration of contracts, all of them signed during the pandemic of Covid-19 or its exit, from translating into unaffordable increases for tenants, especially on the eve of a new price crisis.
The Ministry of Consumption estimates that the measure affects approximately one million households in which 2.7 million people would live.
The origin
The decree-law was approved in the extraordinary Council of Ministers on Friday, March 20, when Pedro Sánchez convened his ministers to move forward with the economic response plan to the war in Iran.
That day, Sumar's ministers stood their ground and threatened not to enter the meeting room if the plan did not include urgent housing measures. The PSOE resisted, calculating that there were not enough votes to pass them.
Finally, the Government approved on the one hand the response plan, which was validated a few days later, and the extension of contracts in another specific decree-law. The discussion delayed the start of the Council and the scheduled appearance of President Pedro Sánchez to announce the measures by hours.
The reactions
Neither PP nor Junts have hidden their rejection of this measure, although Carles Puigdemont's party has not been as explicit in anticipating their vote on a measure they had endorsed years ago during the pandemic and against which they had not been particularly critical.
Both formations came from defeating the Government on two occasions by striking down two omnibus decree-laws, justifying their vote by their veto to extend the anti-eviction moratorium, a measure they link to a defense of illegal occupation.
In fact, the secretary general of the PP, Miguel Tellado, described the decree-law as a norm “where squatters are rewarded” for entering private property”.
The non-negotiation
Junts has broken relations with the Government due to the accumulated non-compliance with agreements reached in this legislature and rejects any negotiation. The response given on more than one occasion about their willingness to vote for an initiative has been “first they pay what they owe”.
That is why in the Executive, especially on the PSOE side, they have been very careful when talking about any contact, so as not to break any possibility of a meeting.
Despite this, conversations have existed since the breakup at the end of last year. The spokesperson herself, Miriam Nogueras, acknowledged having received drafts of the omnibus decree-laws during the day of their approval (which later did not match due to the inclusion of the moratorium).
Tax breaks, the incentive
In the case of the rent decree-law, parliamentary sources assure Demócrata that conversations have taken place, even before the approval of the decree-law, to gauge the possibility of Junts giving its support.
In those conversations, Puigdemont's people's concern focused on illegal occupation and the application of tax reductions. In fact, two weeks ago they registered an initiative in Congress to propose deductions of up to 11,000 euros in personal income tax for amounts paid for a mortgage or rent.
Despite having blocked them in the past, the Minister of Consumption himself, Pablo Bustinduy, showed this Monday his willingness to accept measures of this type, urging the PSOE to bring them to the negotiation. However, Junts rejected the offer, due to the impossibility of modifying the decree-law, implying that they did not trust in giving their vote without having the rest of the measures approved.
Díaz's words and Puigdemont's anger
If any flavor was missing from the sauce, the vice president Yolanda Díaz accused Junts two weeks ago of being a party “always racist and classist”. Statements to which Carles Puigdemont himself responded on his social media account on X, reminding her that it had been her votes that had facilitated the continuity of the Government of which she is vice president.
Junts had already shown itself to be against the decree-law, but Sumar was not resigned to reaching any agreement. “If there was little water in the pool, now there is certainly nothing left,” lamented sources from the socialist wing of the Government days later.
The words of the Minister of Labor may not have been decisive for Junts in deciding their vote, but they certainly did not help to build bridges. A circumstance acknowledged even by the Sumar parliamentary group itself, which warned days before the statements that raising the tone against Puigdemont's party could condemn any glimmer of hope to cling to.
The vote arrives, furthermore, with Junts raising the tone against the Executive, questioning its continuity and calling on the President of the Government, Pedro Sánchez, to conclude the legislature and call elections.