🇪🇸 Political Crisis and Snap Election DilemmaSpain's Prime Minister Pedro Sánchez is considering calling snap general elections following the rejection of two key housing decrees in Congress. The legislative defeat occurred when PP, Vox, Junts, and UPN voted against the measures, resulting in a 178 to 172 vote. With these decrees defeated, protections against evictions for vulnerable households, automatic two-year rent contract extensions, and price caps have lapsed. Sánchez is reflecting on his options over the weekend with his close circle and party leaders before the PSOE executive meeting on Monday. Socialist party figures have floated 29 November as a potential election date, while opposition leader Alberto Núñez Feijóo has demanded an immediate election.Mass Protests Over the Housing CrisisFollowing the parliamentary defeat, 47 demonstrations have been called across Spanish cities for Saturday, 3 October, including Madrid, Barcelona, Valencia, Sevilla, and Bilbao. In Madrid, four protest columns are set to converge on Plaza de Cibeles under demands for a 50% rent reduction, expropriation of vulture funds, and a general strike. Meanwhile, protesters at Puerta del Sol are entering their seventh night of encampment. The High Court of Justice of Madrid (TSJM) has 48 hours to decide whether to order the eviction of the Sol camp, as requested by the regional government of Madrid.Eurozone and Spanish Inflation SurgeEurozone annual inflation rose to 3.8% in September, driven by higher energy prices linked to Middle East tensions. Spain registered a harmonised inflation rate of 5% (with national IPC at 4.9%), making it the fifth highest in the euro area and well above Italy (4.1%), France (3.4%), and Germany (3.3%). Energy costs in the euro area accelerated to 18.8% year-on-year, while fresh food prices rose by 4%. The European Central Bank, which raised interest rates by 25 basis points in September, projects average inflation to remain above its 2% target at 3% in 2026 and 2.5% in 2027.Weather Outlook: DANA Forming After StormsWeather conditions on Saturday, 3 October, bring a temporary easing of rainfall compared to previous days, though instability persists across the Iberian Peninsula and Balearic Islands. Showers and thunderstorms remain expected in Valencia, Catalonia, the Ibérico system, the southeast, and the northwest. However, a new DANA (isolated high-altitude depression) forming to the west will increase instability on Sunday, 4 October, bringing heavy, persistent rain and storms to the northern half of the country, Catalonia, and the Balearics. This follows recent red alerts and disruption in Castellón, Valencia, and Tarragona.
