The conservative PP, far right Vox and Catalan separatist party Junts opposed both housing decrees. The rejected measures included protections against eviction for vulnerable tenants until 2030, a 2% cap on rent increases through 2027 and extensions of existing leases. Tens of thousands rallied in Madrid and about 50 other cities on Saturday, demanding action on housing costs.
The euro fell to its weakest level since May 2025 before the announcement, as reports of preparations for an early Spanish election added to concerns over political and fiscal risks across the region. The housing protests began after the eviction of 87-year-old Maricarmen Abascal from her longtime Madrid home. She has since reached a deal with the property owners allowing her to return without paying the demanded 275% rent increase.