Spain’s Congress on Friday rejected two government decrees designed to address the ongoing housing crisis and deter property speculation, marking a political setback for Prime Minister Pedro Sanchez’s administration.

The first decree, which included measures to limit speculative real estate purchases and provided eviction protections for vulnerable individuals lacking alternative accommodation until the end of 2030, was defeated by 178 votes to 172. Opposition parties such as the People’s Party (PP), Vox, and the Catalan separatist party Junts per Catalunya voted against it. The second decree, which aimed to introduce automatic renewal of rental contracts to enhance tenant security, was also rejected by a margin of 184 to 166 votes. The Basque Nationalist Party (PNV) and Coalicion Canaria were among those opposing the second proposal.

These legislative measures were introduced following the high-profile eviction of Maricarmen Abascal, an 87-year-old woman who had lived for seven decades in her Madrid apartment. Her eviction ignited widespread outrage among tenants’ rights organizations and triggered protests across the country, including the establishment of a tent encampment at Madrid’s Puerta del Sol beginning on September 26.

Addressing parliament during the debate, Prime Minister Sanchez appealed to lawmakers to “do the right thing,” cautioning that “history will judge you sooner than you think and much harder than you imagine.” Despite his plea, the government was unable to secure enough support to pass the legislation.

In the aftermath of the votes, protesters who had gathered near the congressional building resumed their demonstration at Puerta del Sol. Several housing advocacy groups called for a general strike as a response to the legislative defeat, signaling continued mobilization around the housing issue.

The rejection of these decrees highlights the complexities Spain faces in tackling rising housing insecurity and the political challenges of implementing reforms that affect property markets and tenant rights. Opposition parties criticized the government’s approach, arguing it could disrupt the real estate sector and economic stability, while supporters maintained the measures were necessary to protect vulnerable populations and curb speculative practices that contribute to housing unaffordability.