The measures to deal with sharp rise in variable rate mortgages Over the last few days, the demands of United We Can and other progressive forces in Congress have taken over to force Pedro Sanchez to make a move in this new challenge, unleashed by the historic rise in interest rates exercised last week by the European Central Bank (ECB) under the premise of curbing inflation in the euro zone.
Coinciding with the week in which the Lower House has endorsed processing the new banking and energy taxes, at the proposal of the parties that make up the Government and after months of demands in Parliament in favor of a progressive tax reform, the rising mortgage prices It has been added to the other challenges (the rise in the prices of electricity, gas and the basket) on which the parliamentary debate has revolved since the start of the war in Ukraine.
And it is that, the recent decision of the BCE has caused that the one year euriborthe most used indicator in mortgage loans, will close last week at 1.955%, which will make it more expensive by around 170 euros per month an average mortgage.
Faced with this new problem that will weigh down the family economy even more in the midst of a scenario of extreme uncertainty, and in the face of negotiations within the Government for the next contingency plan (the initiatives contemplated in the current royal decree-law end on December 31), Podemos transferred last Tuesday to the PSOE a “temporary” measure to force banks to compulsorily offer their mortgage clients the possibility of taking advantage of a reduction, for one year, of the differential of variable-rate mortgages at 0.10% (without an increase in the repayment term of the credit).
Hours later, the President of the Government overturned the proposal by recalling in an interview on Canal 24 Horas that “it is not allowed” to do something like this in the community, a premise repeated throughout this Wednesday by other ministers of the socialist wing and called an “excuse” by the leader of the purple formation and Minister of Social Rights, Ione Herb.
Faced with this closing of ranks, United We Can has taken another step this Thursday and, as warned, has registered in Congress this proposal aimed at families in vulnerable situations in the form of a bill. “If measures are not taken, we are going to have a structural problem affecting the family economy, the mortgage market and possibly the financial system,” claimed the spokesman for the confederal space in the Lower House, Paul Echenique.
This action has not sat well with the socialist group, which in the words of its spokesperson in Congress, Patxi Lopez, has reproached his coalition partners for not having had time to debate and negotiate his proposal. “I would have liked more that, before presenting it on your own, we would have had more time to discuss it and to talk about it,” said the former lehendakari.
A new ‘common front’
However, as on many other occasions, United We Can has not been alone in this request. Also other usual partners of the Government, such as CKD, EH Bildu or More Country They have emphasized the mortgage market. This was highlighted by their representatives in the control session to the Executive this Wednesday.
The Republican spokesman, Gabriel Rufianhe proposed in his question to Pedro Sanchez the creation of a rescue fund to help families with difficulties to pay mortgages before the rise in interest rates, in addition to warning once again that if it does not act, the right “will destroy”.
“Months ago I talked about the price of food and it sounded Chinese to some, I told them that it was surely going to destroy them. Today I am talking about mortgages, interest rates. Today there are people with the same fear as ten or fifteen years ago years to receive the mortgage receipt, it is estimated that interest rates can rise to 3 or 4%, which means that someone who pays 500 euros of mortgage, pays 1,000 euros”, he justified.
Likewise, as Rufián has specified this Thursday, the rescue fund proposed by his formation would be financed with a tax on large fortunes. “The idea is to introduce a tax base for large fortunes and from there get a rescue fund, because from now on people will not be able to pay their mortgages and interest rates continue to rise,” he said in statements collected by Europa Press.
Oskar Matuterepresentative of EH Bildu, also urged the first economic vice president, Nadia Calvino, “do much more and demand that the expected rise in mortgages be cancelled.” “We will have to intervene in the real estate market, and that is to side with the people,” he claimed.
Similarly, the spokesman for More Country, Inigo Errejonclaimed the ceiling on mortgages “in coherence” with the turn to the left undertaken by the Prime Minister from the moment he announced the creation of the two taxes on companies that are enriching themselves with the consequences of the war.