In a significant policy announcement aimed at addressing Spain's housing crisis, Alberto Núñez Feijóo, the leader of the People's Party (PP), declared a sweeping reduction in the Property Transfer Tax (ITP) for second-hand homes to 4%.

The announcement was made during a high-profile meeting with party leaders in Oviedo, where Feijóo and regional presidents also signed the 'Declaration of Asturias'.

This manifesto outlines joint measures for economic revitalization through market unification, administrative simplification, and immigration strategies.

The focus of the Declaration is on housing, which Feijóo described as a critical issue in Spain, disproportionately affecting younger populations and single-parent families.

Of the ten solutions included in the upcoming Comprehensive Housing Plan, the foremost is the reduction of taxes.

"We pay between 15% and 20% in taxes," stated Feijóo, advocating for fiscal relief for buyers, renters, and landlords alike.

The reduction in the ITP from a maximum rate of 10% to 4% is particularly notable given that secondary market properties make up four-fifths of transactions.

Although some PP-governed regions already have reduced rates below 10%, none have approached the 4% threshold.

For context, Madrid has the lowest current rate at 6%, while the Canary Islands and the Balearic Islands stand at 6.5% and 13%, respectively.

The majority of regions set rates between 8% and 10%.

This tax cut is expected to be significant, especially for young Spaniards, as the PP governs in 12 regions encompassing 70% of the population.

On a €400,000 home, for instance, the reduction from 10% to 4% could mean saving €24,000 in taxes.

In addition to tax reductions, the PP announced plans to convert public lands into affordable housing and to lease plots at low rates.

Feijóo also introduced an autonomous insurance scheme to secure rental payments and provide legal protection in cases of default, addressing public concerns over illegal occupations.

He announced a package of measures to counter illegal squatting and facilitate closer cooperation between residents and law enforcement.

Furthermore, the PP proposed creating a common economic market among its governed regions, aimed at reducing business bureaucracies.

Feijóo did not shy away from criticizing the current government, accusing it of decline and mismanagement.

"Spain is not bound to failure or continued misgovernment," he asserted from the Hotel La Reconquista in Oviedo.

According to Feijóo, these agreements highlight the possibility of an alternative way forward, with the PP positioning itself as a unifying political force.

Despite government opposition, Feijóo is confident that Spaniards will recognize and eventually embrace the PP’s proposals, asserting that their governance is already a thing of the past.

The leader did not hold back on critiques of Sánchez's government, especially regarding its recent proposal to limit citizen-led judicial actions and influence ongoing legal cases.

Feijóo labeled these moves unreasonable and antithetical, likening them to preemptive pardons for legal cases involving government family members.

"What kind of impunity is that?" he questioned, vowing to stand firm in defense of democracy.

Meanwhile, Carles Puigdemont, leader of Junts and former Catalan President, issued a stark warning to Sánchez.

Should the Congress fail to address Junts' non-binding resolution demanding a 'vote of confidence', Puigdemont threatens to end their collaboration.

Underlying this tension is a complex interplay of negotiations, including judicial reforms proposed by the PSOE aimed at countering perceived judicial overreach, or 'lawfare'.

Puigdemont’s resolve to see through his legislative agenda is unwavering, demanding comprehensive immigration policy transfers and accusing the current government of insincerity.

With the 'catalan fiscal agreement' hangin in the balance, the outcome of the vote could prove pivotal, potentially impacting government stability and ongoing legislative processes.