Monday, January 24

The PSOE and Podemos save the housing law in the middle of a storm due to the labor reform



Early last Thursday, socialists and purple people were still busy writing the text -to which EL Periódico de Catalunya has had access- and there were those who predicted a long weekend of negotiations. However, the final agreement came on Friday. The final talks were left out of the internal battle in the Executive. The draft of the law includes all the measures that had already been advanced, in a clear example that the bridges continue to function: rent limits of companies that have more than 10 properties, incentives for small owners to lower them, sanctions for those who have empty houses in areas considered stressed and allocate 30% of new constructions to protected housing, although here the municipalities will have to compensate the developers.

The Council of Ministers will approve the draft bill on next Tuesday. The public consultation process will then begin and it will be later when it reaches the Congress of Deputies. In the Government they trust that their final approval will arrive by the end of 2022. In any case, it will be applied only in those communities and municipalities that so decide, weighing down their ability to change the market. Madrid and Galicia, for example, both governed by the PP, have already announced that they ignore the norm. To this is added that some of the most forceful measures will not be able to be deployed until the spring 2024. By then, general elections will have already been held and there will be a new government in Moncloa, whatever its color.

Requirement for Budgets

“Finally, after more than 40 years, the first [ley de vivienda] of the history of democracy ”, he said Pedro Sanchez this Sunday, during the closing of the congress of the PSOE Extremadura, an appointment in which the Prime Minister announced that the next Council of Ministers will also approve an additional 100 million to help vulnerable households. Sánchez did not stop at crashes of the last days within the coalition.

Few issues have caused so many discussions between the PSOE and Podemos as the housing law. His ability to tighten the Executive is only surpassed by the labor reform, the great struggle that is coming, with Díaz ensuring that “repeal” the regulation of the PP and the socialists promoting Calviño, critical of this approach, to give peace of mind to the bosses and the EU.

The regulation of the real estate market is fundamental for the purple party, where several of its leaders come from movements such as the Platform for People Affected by Mortgages (PAH), and the initial agreement on this rule allowed to unblock the global agreement of the next General State Budgets.

The words of disagreement

In the negotiations of the public accounts last year, the regulation of rents already played a key role. Pablo Iglesias, At that time second vice president, he threatened not to support the Budgets if there was not a commitment to lower property prices. Sánchez attracted his partner with an agreement in which they promised to promote a housing law in the within three months. A year later that promise begins to materialize.

Socialists and purple had been arguing for months on account of five words that were included in that pact: the creation of mechanisms that would allow containment or “eventually drop in prices “. Churches and Ione Belarra, who took over in the negotiation after the departure of the former purple leader, demanded measures that force rents to be lowered. Its partners were reluctant and put proposals based on fiscal benefits.

The norm, finally, supposes a compendium of both positions. At least, both parties seem satisfied with their wording and take heart from the measures introduced. The PSOE has saved small owners from forced reductions and United We can applaud that the law is going to oblige the big forks -businesses that have more than 10 homes- to lower prices to the index that the Government marks, which has been given a period of 18 months from the entry into force of the law. It remains to be seen whether inner satisfaction that transmit socialists and purple translates into the necessary parliamentary support.


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