Tue. Oct 4th, 2022

The negotiation between PSOE and United We Can remains stagnant and with no signs of improvement. This was verified in the new meeting held by both formations this Tuesday, which resulted in the same result as last Thursday: no progress, diametrically opposed conceptions on how the rental market should be regulated and the refusal of the Socialists to comply with the agreement they signed last October , when they made a commitment with the morados to approve a price control mechanism.

Less than a week before the end of the month, it is practically impossible for the PSOE and United We Can to comply with the agreement they signed in October, which established that the housing bill had to be approved by the Council of Ministers in February to begin immediately after its parliamentary procedure.

Purple sources are enormously critical of the PSOE, which they accuse of having attended this Tuesday’s meeting the same as last week: without any written proposal regarding the regulation of rents, empty housing or evictions.

Despite the fact that the positions continue to be opposed, the Government spokesperson, the socialist María Jesús Montero , has distanced herself from the atmosphere of disagreement from the Moncloa press room, assuring that there will be an agreement between the coalition partners .

“There is no other scenario on the horizon nor are we going to carry out a housing law without the assistance of both formations,” he asserted.

Beyond that declaration of intent, the swords remain high, with the PSOE ensuring that it will comply with the coalition agreement but at the same time denaturing its terms and refusing to force the owners to have to put part of their properties in social rent.

This refusal has led to criticism of the PSOE of bowing to the pressure of the large investment funds – “vulture funds” -, which Montero has not entirely rejected. “The Government is sensitive to companies, but they are not pressures in the classical sense, it is empathy with the situation these productive sectors are experiencing,” he indicated.

As confirmed this Monday by the Minister of Transport, José Luis Ábalos -coproponent of the housing law, together with the Second Vice Presidency of Pablo Iglesias-, the idea of ​​the PSOE is to establish tax cuts for homeowners who rent them to a price lower than that established by the administration.

As he said, he was awaiting the approval of the Treasury and his titular minister, Montero, has influenced this Tuesday in this way that United We can categorically rejects because, according to a report from the Second Vice Presidency , it has already been tested in Portugal and has been a ” failure”

“Price containment or lowering mechanisms”
But it is that, in addition, the refusal of the PSOE to establish a mechanism of limitation of prices of the rent supposes to breach the agreement signed with United We Can in October.

In this pact, both forces undertook to “enable the communities” to establish price indices and “articulate basic mechanisms” so that they could determine “stressed” market areas where the rent had experienced “an abusive and sustained increase.”

According to that pact signed by PSOE and United We Can, in those areas the law had to contemplate the establishment of “containment mechanisms or possibly lower prices, both for new contracts and existing contracts.” “In any case,” the agreement also stated, “the unjustified increases in new leases will be contained, taking as a reference the price of the previous lease and limiting the increases allowed to the situations contained in the housing law.”

“In order to comply with what was agreed in the Coalition Government agreement between United Podemos and PSOE, both formations have agreed to regulate the containment of rental income in the housing law, ” the pact also stated.

Montero has denied on Tuesday that the socialist part of the Executive renounces this coalition agreement, although with nuances that, in the eyes of the socialists, make the price index and the limitation of income no longer the best solution .

The spokeswoman for the Executive has stressed that this regulation may not have “legal certainty” and may make owners not want to rentyour floors.

“We must ensure that the measures do not have the opposite effect, the contraction of supply because [the owners] understand that there is no legal certainty,” said Montero, who also recalled that the price index is only useful in areas very localized of large cities, those that can be considered “stressed” and that the pandemic and the decline of tourist apartments have changed the situation since the high prices before the coronavirus.

“There has not been any kind of resignation by the Ministry [of Transport, Mobility and Urban Agenda] to the investiture investiture agreement, but there is a discussion about the tools and instruments, ” Montero said about the differences between forcing owners to rent part of their properties at affordable prices or to give them a tax incentive to do so.

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