Episode #36
03.36 - Spain Today News 30 September 2026
Housing Reform Decrees and Sol Encampment The Spanish Council of Ministers has approved two landmark housing decrees. The primary decree extends active residential lease contracts for two years if they expire before the end of 2028, bans evictions for vulnerable households until 2030, caps annual rent increases, regulates seasonal and room rentals, levies a 10% VAT on tourist flats, and prohibits speculative property acquisitions by vulture funds until 2028. The second decree establishes automatic, indefinite lease renewals as long as tenants fulfill rent payments. Both decrees face a crucial convalidation vote in Congress this Friday, 2 October, where approval remains uncertain due to uncommitted parliamentary allies including Junts and Podemos. Meanwhile, hundreds of protesters continue their fourth consecutive day of encampment in Madrid's Puerta del Sol, demanding broader housing rights and a potential general strike. The regional government of Madrid has issued a 48-hour ultimatum demanding eviction, while the Government Delegation has insisted on respecting the fundamental right to peaceful assembly. Soaring Inflation and Energy Relief Package Spain's general inflation rate escalated to 4.9% in September, marking its highest level in over three and a half years. Driven by rising international fuel prices linked to the US-Iran conflict and energy bottlenecks in the Strait of Hormuz, monthly inflation grew by 0.3 percentage points while core inflation rose to 3.1%. In response, the Executive approved a third emergency relief package running through 31 December. Key measures include a 20-cent-per-litre fuel discount for October, reducing electricity and gas VAT to 10%, cutting the electricity tax to 0.5%, and capping price surges on regulated gas and butane cylinders. International Diplomacy and EU Border Security During a state visit by French President Emmanuel Macron, King Felipe VI asserted that protecting Spain's external border in Ceuta following recent mass entries is an "unacceptable" security challenge and a collective responsibility for all European Union member states. The King called for stronger EU solidarity, security cooperation, and European defense autonomy. Concurrently, Spain's Senate voted down the Franco-Spanish Treaty of Friendship and Cooperation.
