Spain's prime minister, Pedro Sánchez, has called a snap general election for 29 November, following the rejection of two housing decrees in the lower chamber by rightwing parties. Speaking from the staircase of the Moncloa palace, Sánchez acknowledged that his government had not achieved all it had set out to do. "Many injustices remain to be corrected … particularly regarding inequality in public services and access to housing," he said, adding: "To do more, we need to renew and expand public support."
Housing crisis at the forefront
The move comes after tens of thousands took to the streets to protest against the housing crisis, with camps reminiscent of Spain's 15-M anti-austerity movement and the global Occupy movement of 2011. According to Spain's national public opinion research institute Centro de Investigaciones Sociológicas (CIS), housing has been the country's top preoccupation since the end of 2024, as a growing number of people struggle to pay rent.
Sánchez hopes to ride the wave of popular mobilisation to turn public attention away from the Ceuta immigration crisis of July, which rightwing opponents exploited as a demonstration of the government's failures, and focus on housing, an issue where the left holds stronger political ground. But this time it will be hard to convince Spaniards that with a new lease of life, the progressive coalition government will solve an issue it had promised to address a long time ago.
Economic achievements versus public discontent
Seen from the outside, Sánchez's Spain may appear to be a dazzling political success. In the years after the Covid pandemic, Spain's GDP grew at a rate of around 3%, while France, Germany, the UK and Italy grew at 1% or less. Spain is also held up as a model of successful green transition, with renewables now generating close to 60% of the country's power, which has kept energy bills low. Spain, enabled by significant Chinese investment, is also becoming the leading European hub for electric car production.
To these achievements add the significant social improvements under Sánchez, exemplified by the rise in the minimum wage from €736 to €1,184 per month since 2018. Yet despite these successes, Sánchez's centre-left coalition is now trailing the right by about 7 percentage points in national polling. That's partly because while minimum wages have increased, median wages have remained relatively stagnant. But it is real estate that Sánchez's government has been judged as failing to deliver: during its eight years in power, house prices have risen by an estimated 50%, with rents rising by over 40%.
Lessons for progressives
As climbing the housing ladder becomes prohibitive, a growing number of young people in Spain are forced to pay extortionate rents. This is acutely felt in large urban areas, where tourists and digital nomads increase rents, forcing out local residents; this is enabled by private equity firms, who purchase entire blocks to expel local inhabitants to create Airbnbs. Sánchez's government has repeatedly promised to take action, but its measures have been thwarted by political gridlock or proven indecisive.
If Spain's centre-left coalition falls, the country could be left with an alliance of the mainstream conservative Partido Popular and the far-right party Vox. It would be the most rightwing Spanish government since Francisco Franco's dictatorship. The lesson for progressives everywhere is clear: economic growth and ambitious reform will count for little unless working people feel the benefits in their daily lives.
