The National Assembly rejected the Socialists' housing relief bill on Friday, forcing Pedro Sánchez to call a snap election for 29 November.
The bill, which had promised automatic renewal of tenancy contracts and limits on evictions of vulnerable tenants, fell apart when the Catalan separatist party Junts voted against it, citing rushed drafting and potential market harm.
Thousands of protesters swarmed Madrid and other cities in a week‑long demonstration sparked by the eviction of 87‑year‑old Maricarmen Abascal, who was forced to leave a flat she’d inhabited for 70 years when an investment firm raised her rent by 275%.
Opinion polls place the opposition Popular Party ahead of the Socialists, but a lone majority remains elusive; the PP would need far‑right Vox to govern, a prospect that has spurred calls for early elections from both sides.
Sánchez’s decision follows an eight‑year tenure marked by economic growth and corruption scandals involving close aides, while his handling of the Ceuta migrant influx has drawn criticism from local residents.
The election will be scheduled for 29 November, and Parliament will convene on 6 December to decide the rules of the new majority, with the opposition likely to demand a coalition with Vox.