evictions

The appeal presented in April by Spain’s executive calling for the suspension of some articles of the Catalan law against energy poverty has been accepted by the Spanish Constitutional Court (TC). In particular, the magistrates have cautionarily suspended 8 articles mainly oriented toward avoiding evictions. According to the TC, the suspension is automatic and therefore the magistrates “couldn’t do anything” but accept the Spanish government’s appeal. The Catalan Government’s Spokeswoman, Neus Munté, stated that this suspension was “to be expected”. The TC’s decision comes two days after thousands of people rallied in Barcelona to protest over the Spanish court’s measures against numerous laws passed by the Catalan Parliament. 

A wake up call from the European Parliament to the Spanish government regarding the evictions and the ‘preferential shares’ scandal, which offered high rates of return but ended up with thousands of savers unable to recover their money four years ago. MEPs approved this Thursday a resolution which urged Spain to “drastically” reduce “the unacceptable number of evictions” and to “supervise” whether the communitarian legislation in relation to mortgage loans is correctly applied in order to “solve the current problems and prevent abusive practices”. This resolution was approved on the same day that Spain’s Constitutional Court accepted the Spanish government’s appeal to stop the Catalan law which would fine the owners of empty flats and deal with the situations of housing emergency. 

Ada Colau is the new Mayor of Barcelona. It is the first time that the Catalan capital has a woman as Mayor. Colau, who led the alternative left and green coalition Barcelona en Comú, won the last municipal elections – held on 24 May. However, she lacked support to reach the absolute majority in the City Council and be elected Mayor. During the last 3 weeks, she has been negotiating with the other leftist parties over forming a coalition government or at least obtaining their support and reaching the 21 vote minimum necessary in the City Council’s mayoral election. None of the other parties have so far agreed to form a government coalition with Colau, but 3 of them have backed her to be elected Mayor. They are the left-wing Catalan independence party ERC, the Catalan Socialist Party PSC and the radical independence and alternative left party CUP.

Catalans are holding their municipal elections on Sunday, while the elections to the Catalan Parliament are to be held in September, as opposed to other parts of Spain, where they are voting for their regional parliaments on Sunday. These municipal elections come after 7 years of economic crisis and also with very uncertain political horizons. Two debates have dominated the campaign: Catalonia’s independence and the rise of new or secondary parties that promise to change the current model. For many people in Catalonia, Sunday’s elections will be a first stage of the ‘de facto’ plebiscite on independence that is going to take place with the Catalan elections on 27 September. It is also the opportunity to support changing the current political, economic and social model, with the rise of alternative left coalitions. Furthermore, majorities and town halls go through significant changes, particularly in Barcelona and the cities of its Metropolitan Area, where there are no clear winners forecast and surprises are likely to happen.

In 72 municipalities with a high demand for housing, the Catalan Government and the affected town halls will be able to use a right of first refusal to buy flats and houses on sale that are now owned by financial entities as a result of home evictions carried out since April 2008. The measure will only be in place until 2021 in those 72 municipalities and the aim is to prevent investment funds from buying them solely for speculative purposes and not to rent them. The initiative comes after it was noticed that investment funds were buying a great number of empty flats from banks, who came to own them after the previous owners were unable to pay their mortgage during the years of economic crisis. The measure will be included in a decree that will enter into force immediately and is part of a wider plan to facilitate access to housing.

The Catalan Government approved on Tuesday a measure to impose a tax on empty flats owned by financial institutions. The aim of the tax is to incentivise banks to rent out the empty homes. Santi Vila, the Catalan Minister for Planning and Sustainability, said that the "mere announcement" of the tax has already caused Sareb [Spain's public 'bad bank'], Catalunya Caixa and Bankia to yield to the Government 1,230 apartments for social rent. During the press conference after the weekly Cabinet meeting, Vila pointed out that the new tax will not apply to individuals and will only be intended for flats that have been taken out of the market for more than two years. The Minister also said that the measure is not simply about "tax collection" but is instead to ease the access to housing market in the midst of a housing crisis.

The Catalan Parliament held on Wednesday a monographic session on poverty, which has increased over the past few years, spurred by the financial crisis. According to a report published by the Red Cross this week, there are 200,000 families in Catalonia which live below the poverty line and since the crisis started, 88 Catalans a day have crossed such a line. With a population of some 7.5 million and a GDP per capita of around €28,000 (similar to the UK's) Catalonia posts a 22.3% unemployment rate and a 26.4% child poverty rate. Opposition parties asked for greater efforts and further measures to fight the poverty increase. The Catalan Government emphasised budget figures and detailed several actions in different areas to show they are tackling the issue. In this vein, the Executive criticised that child poverty stood at 22% in 2006, in prosperity years. Furthermore, they complained about the limited fiscal powers on taxation and public deficit, which seriously reduce spending possibilities.

The Court based in Strasbourg has answered the appeal of the lawyer representing the Mortgage Platform (PAH), which had occupied an entire apartment block in Salt, near the Catalan city of Girona. 16 families occupied the block in order to get a house, but 3 left fearing eviction. The European Court of Human Rights (ECHR) has temporarily delayed the eviction of the entire apartment block as a precautionary measure until it has fully studied the case, arguing that evicting the families would go against international law on housing rights. The ECHR has given the Spanish Government 8 days to prove it has adopted the measures to guarantee such rights. The decision comes the day the eviction was planned. Families and a thousand supporters received the news crying of joy and shouting the PAH’s motto: “Yes, it can be done; yes, it can be done”.

Catalan first instance courts ordered 25,422 evictions last year, representing 25.1% of the total number in Spain. Two weeks ago the European Court of Justice declared the Spanish Mortgage Law to be abusive towards citizens. Home evictions have increasingly become a social drama in Catalonia and in the whole of Spain, particularly over the last two years, as the crisis became harsher. In 2009, a platform to unite people affected by house evictions was created in Barcelona and it has managed to stop hundreds of cases throughout Catalonia and Spain.

The Popular Legislative Initiative promoted by the Platform is pending debate in the Spanish Parliament. The Mortgage Platform was founded in Barcelona in 2009. Over recent years, it has worked intensively to prevent and ultimately stop people from being evicted from their own homes. Subprime mortgages, very common during the first decade of this century, were one of the main consequences of the property bubble in Spain and have resulted in more than 400,000 foreclosures in the whole of Spain since 2007. This situation is aggravated due to the economic crisis, which increases social inequality and has placed evictions among the first concerns on the political agenda.