Politicians need to solve the affordability crisis to stop the far-right, social democratic Portuguese prime minister Luís Montenegro told MEPs on Tuesday (6 October).

Opening a debate in Strasbourg, Montenegro called for more lax regulation as a way to address the housing crisis, defended strict migration policies, and expressed support for funding poorer regions in the next EU budget.

He also stressed the importance of lowering fuel prices and prioritising the energy transition to “solve the real problems that people wrestle with,” adding that “our response … has to be felt in the lives of Europeans” to avoid disappointed voters turning to populism and extremism.

Back at home, Montenegro has the far-right Chega (Enough) party on his tail: in the 2025 parliamentary elections, they won 23 percent of the ballots against the Montenegro alliance’s 33 percent.

Now, polls give Chega 27 percent of declared votes for the next parliament, slightly less than the Socialist Party (28 percent) and ahead of the current government coalition (24 percent).

For his part, a Chega MEP (Patriots for Europe), António Tânger Corrêa, challenged Montenegro on Tuesday for relying on wind and solar energy without enough storage in case of blackouts and shutting down coal power plants.

He also warned Montenegro against agreeing to limit unanimous votes in the European Council in future, as representing a blow to Portugal’s sovereign powers.

From his left-wing opponents, Portuguese MEP Catarina Martins pointed out the high rent costs in the country and criticised the government for failing to support low-earning tenants.

In Lisbon, the average rent was only €84 less than the average salary in 2026, according to Portugal’s statistics body.

Montenegro said his government simplified the law around housing construction – much in line with the EU’s focus on deregulation – and proposed tax breaks to encourage investors to build more.

An EU-level policy complementing it “would be very useful,” he said, as long as it simplified existing regulations.

The Affordable Housing Act presented by the EU Commission in early September aims to improve the market for tenants by restricting short-term rentals.

Spanish Prime Minister Pedro Sánchez announced a snap election for late November after two housing bills were defeated in a parliamentary vote on Friday, October 2. The bills came amid widespread mass mobilizations demanding urgent action on the country’s housing crisis, following the eviction of an 87-year-old woman in Madrid.

Hundreds of thousands of people took to the streets of approximately 50 cities over the weekend in support of these demands.

“It is true that there are still many injustices to correct, many social goals to achieve, and many problems to solve – above all in the areas of inequality, public services, and access to housing,” Sánchez said in his speech on Monday, as he appealed to voters to give progressive forces more decisive electoral support to allow them to implement reforms more easily.

Real estate speculation drives housing crisis

While Sánchez’s administration has profiled itself as one of the more progressive governments in Europe in terms of international policy, national movements remain frustrated by the lack of decisiveness it has approached making changes at home – including in housing policy.

For years, tenants unions have been warning against the different ways house-owners, particularly real estate speculation funds, have exacerbated housing insecurity for the general population.

Existing anger spilled over as Maricarmen Abascal, an elderly tenant in Madrid, faced eviction from the home she had lived in for 70 years. After the development company Urbagestión Desarrollo e Inversión SL acquired the house Abascal lived in, they imposed a 275% rent increase that she was not able to meet, leading, after a lengthy legal process, to her eviction at the end of last month.

Read more: Die Linke wins Berlin election with focus on socialization of housing

The mobilizations that followed addressed a wider set of problems. “Maricarmen’s situation reflects a housing model that prioritizes real estate profits while abandoning the very people who built our neighborhoods over the decades,” Madrid Tenants’ Union (Sindicato de Inquilinas e Inquilinos de Madrid) warned.

“Most serious of all is that this situation cannot be understood without considering the weight of laws inherited from the Franco regime that denied women basic rights,” the union emphasized in May. “The original contract was signed solely by Maricarmen’s father because the legal system of the time rendered women invisible within the family. Had that same contract been signed today, both parents would have been named as holders, and Maricarmen would remain fully protected.”

“Yet an extremely restrictive interpretation of the regulations has ultimately weighed more heavily than social reality, than the desire to protect those who rent, and more than seventy years of roots in a neighborhood,” they added. “For the Madrid Tenants’ Union, the position is clear: no formalistic interpretation of the law can justify evicting an 87-year-old woman from the home where she has lived her entire life simply to boost the profitability of a real estate investment.”

Unions promise building general strike for housing

The protests formulated several demands to the government, including a ban on eviction of vulnerable tenants where alternative housing is not available; a limit to short-term and room rentals; a rent freeze; and an extension for contracts ending in 2026 and 2027.

Such demands were generally by the public, as well as by trade unions. “Housing and work are not separate struggles,” unions wrote, pledging to work towards a general strike for housing. “The rise in rents is a direct transfer of wealth from the working class to rentierism. Our wages end up, month after month, in the pockets of the rentiers who control our homes.”

The uproar pushed Sánchez’s government to reflect these demands in two bills it presented to parliament. Most considered this a significant breakthrough for the housing movement despite the official texts not fully corresponding to the protesters’ vocabulary and the vote taking place on two separate proposals. 

Watered down or not, right-wing and far-right parties voted against both bills.

Read more: Far-right leaders gather in Madrid to “make Europe great again”

“We have a democracy held hostage by rentiers and speculators,” the progressive party Podemos wrote as protests rolled out over the weekend. “The housing mobilization must keep growing and move toward a general strike until the speculators and those who defend them in the institutions have nowhere left to hide.”

“Between now and November 29, the voices of all of us who want peace must be heard,” Irene Montero from Podemos added after the snap election announcement. “Those of us who want our sons and daughters to avoid war and to have healthcare and education, instead of money being spent on weapons; who want homes to live in; who want jobs and time to spend with our loved ones; and who want the cost of living to go down.”