Nationwide strike grips Spain over housing costs ahead of election

Organized by Spain’s two largest trade unions, UGT and CCOO, which collectively represent over one million workers, the strike also garnered support from tenants’ groups struggling with rising rents and potential evictions.

Prime Minister Pedro Sanchez is attempting to capitalize on public frustration regarding housing affordability, hoping to shift attention away from recent corruption allegations and a tragic train accident. His Socialist Party currently trails in opinion polls.

While union leaders declared the strike a success, participation varied across the nation, with the highest turnout observed in coastal regions experiencing acute property pressures. Retail chains such as Primark, H&M, and Pull & Bear closed stores along Madrid’s Gran Via, while Barcelona saw numerous businesses boarded up in anticipation of potential disruptions. Protesters chanted slogans like, “We’re going to close the Mango store,” while brandishing sets of house keys.

Spain faces a significant housing deficit, currently estimated at 750,000 homes, projected to exceed one million by 2028. The rising cost of homeownership has driven up rental prices, with the average rent of €1,176 ($1,315) consuming nearly all of a young person’s average monthly salary, according to the Youth Council of Spain. “I’m 36 years old and I still can’t move out on my own,” stated Madrid resident Jesus Gonzalez.

Angela de Miguel, vice president of the CEOE business lobby, argued that the strike negatively impacts small businesses struggling to recruit employees due to the lack of available housing. She advocated for increased construction and reduced taxes on home buying and construction.

Severe storms, named Charles and Bruna, disrupted planned afternoon rallies, forcing the cancellation of a demonstration in Cadiz. Despite the weather, unions anticipate the strike will involve around 5 million people, out of a total workforce of approximately 23 million.

Participation rates were reported at 90% in ports and the automotive sector, with factories including Volkswagen in Navarre and SEAT in Barcelona experiencing complete shutdowns. National grid operator Red Electrica registered a 15.5% drop in electricity demand during peak hours. Public transportation was also affected, with reduced metro services in both Barcelona and Madrid.

BBVA Research chief economist Miguel Cardoso estimates the strike could reduce Spain’s annual gross domestic product by 0.1%-0.2%, though the impact may be lessened by the increasing prevalence of remote work and the growing service sector.

Police reported 40 arrests and 476 incidents by midday, including blockades and burning of rubbish containers. Unions have filed a complaint alleging a disproportionate police response involving tear gas and batons, resulting in 20 injuries. The strike was triggered by recent protests following the eviction and death of an 87-year-old woman in Madrid, ultimately leading to Sanchez’s decision to call a snap election.