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Spain's parliament was to vote Friday on government housing decrees introduced after nationwide protests triggered by the eviction of an 87-year-old woman, but there were doubts the measures would pass.
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The uncertainty followed a decision late Thursday by the Catalan separatist Junts party to oppose both measures, potentially depriving Prime Minister Pedro Sanchez's coalition of a parliamentary majority.
The housing crisis has dominated political debate since the eviction, on a stretcher, of 87-year-old Maricarmen Abascal on September 23 from the apartment she had occupied for around seven decades.
Her case has become a symbol of growing frustration over housing affordability.
"It can't go on like this!" Miel Diaz, a 23-year-old teacher at the protest Friday, told AFP.
"Most people in this country have a housing problem or know someone who does," he added.
Teresa Morollón, 46, said she felt "let down" by the likelihood of parliament voting against the measures.
"We understand that the parliamentary arithmetic is extremely complicated, but bold and inclusive policies need to be put in place for everyone," she added.
Abascal's case galvanized thousands of Spaniards to protest the housing situation, and tent camps have sprung up in Madrid and other cities to press for urgent government action.
The pensioner was forced out of her flat after it was acquired by an investment company that sought to increase her rent by 275 percent.
On Monday, though, the company reversed course and agreed to allow Abascal back into the apartment.
- 'Hour of truth' -
The government decrees include the automatic renewal of rental contracts when they expire, and measures aimed at restricting the eviction of vulnerable tenants.
They also target so-called vulture funds: investment firms that buy properties at low prices in pursuit of higher returns.
Socialist Prime Minister Pedro Sanchez has repeatedly urged lawmakers to support the measures, calling on them to act with "responsibility" in the fragmented parliament, where his coalition government lacks a majority.
"The hour of truth has arrived," he wrote on X late on Thursday, arguing parties must choose if "they are with the social majority or with the speculators".
Housing Minister Isabel Rodriguez said on Friday that thousands of people were waiting for the result of the vote.
"The session today is not just another session," she said.
The government had negotiated the decrees with business-friendly Junts, which backs less regulation on landlords.
But the Catalan party announced late Thursday that it would oppose both decrees unless the government withdrew them and agreed to draw up new measures. The government refused.
Junts argues that the proposed measures unfairly lump small landlords who rely on rental income together with profit-driven real-estate companies, and could have "negative and irreversible" effects.
Sanchez's government relies on the support of the Junts party's seven lawmakers to pass legislation.
- Early election? -
The Spanish Tenants' Union criticised the prospect of defeat, with spokeswoman Alicia del Rio accusing parliament of defending speculation and highlighting what she called the "colossal gap" between demands from society and what lawmakers were preparing to vote on.
It has called for a general strike and has vowed to keep occupying Madrid's central Puerta del Sol until its demands are met.
A defeat would increase pressure on Sanchez's minority government and could intensify opposition calls for an early election.
The leader of far-right Vox party, Santiago Abascal, said on Friday that "the sooner elections are held, the better".
Spain's next general election is not due until 2027, and Sanchez has repeatedly ruled out calling an early vote.
Recent opinion polls have generally placed the opposition Popular Party ahead of the Socialists.