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POLITICS

Spain’s PM seeks ‘dialogue and cooperation’ on China trip

Spanish Prime Minister Pedro Sánchez urged "dialogue and cooperation" during a visit to China on Monday as he seeks to boost ties with the economic giant despite a trade standoff between Beijing and the European Union.

Spain's PM seeks 'dialogue and cooperation' on China trip
Pedro Sánchez and Xi Jinping in March 2023. Photo: Borja de la Casa/Moncloa/AFP

Speaking at a forum in Beijing, Sánchez hailed “strong ties” between China and Spain.

“Even on those issues where our positions do not fully coincide, we maintain a constructive willingness to engage in dialogue and cooperation,” he said Monday in a video shared on his social media.

“We are committed to developing a positive agenda and seeking consensual solutions that benefit all parties,” he added.

He then met with the Spain-China Business Advisory Council – part of efforts to “deepen trade and investment relations” between the two countries.

“Our objective is clear: to foster a balanced relationship, based on respect and reciprocity that benefits both nations,” Sánchez said on his account on X.

Sánchez is set to meet Premier Li Qiang at Beijing’s Great Hall of the People on Monday afternoon, as well as President Xi Jinping and top lawmakers, according to a schedule provided by his office.

The Spanish premier met with Xi during his last visit to China in March 2023, and took part in the Boao Forum for Asia – similar to the World Economic Forum held in Davos – in China’s Hainan province.

His trip will also take him to Shanghai on Tuesday and Wednesday, where he will meet local officials and businesses as well as inaugurate a new Cervantes Institute cultural centre.

Trade tensions

The premier’s arrival in Beijing came shortly after Venezuelan opposition figure Edmundo González Urrutia — who insists he, not strongman Nicolas Maduro, is the country’s legitimate president-elect — fled for exile in Spain.

Speaking at a socialist party meeting on Saturday, Sánchez described González Urrutia as “a hero who Spain will not abandon”.

Beijing enjoys close ties with Maduro’s government.

Sánchez’s visit also comes against the backdrop of mounting trade tensions between the European Union and China.

The European Commission, which oversees the bloc’s trade policy, announced last month that it planned to impose five-year import duties of up to 36 percent on electric vehicles imported from China.

Also last month, Beijing launched a probe into EU subsidies of some dairy products imported into China.

In June Beijing launched an anti-dumping investigation into pork imports from the bloc in response to an application submitted by a local trade grouping on behalf of domestic producers.

The Iberian nation is the EU’s largest exporter of pork products to China, selling over 560,000 tonnes to the world’s second-largest economy last year at a total value of €1.2 billion ($1.3 billion), according to industry body Interporc.

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PROPERTY

Spain’s plan to limit temporary accommodation rejected

Spain's left-wing government had planned to tighten its grip on temporary accommodation rentals as a potential means of making more long-term rentals available, but the country's right-wing parties on Tuesday rejected the proposal in parliament.

Spain's plan to limit temporary accommodation rejected

If passed, the new law would have meant that anyone who wanted to temporarily rent a property would have to explain why and provide a valid reason.

For example, students or researchers would have to show the research contract or course booking to show it would only last a few months.

It would have also meant that if more than six months passed or more than two consecutive contracts issued, it will have automatically become a long-term habitual residence instead.

On Tuesday September 17th, the proposal was ultimately rejected in the Spanish Congress, voted against by Spain’s three main right-wing parties – Catalan nationalists Junts, Spain’s main opposition party the PP and far-right Vox.

The aim in part was to try and rectify the controversial Housing Law, which came into effect in 2023.

In most people’s eyes, the legislation has failed as landlords have found several loopholes to get around the restrictions, prices have continued to increase and the stock of rental properties is even more diminished.

READ ALSO: Has Spain’s Housing Law completely failed to control rents?

As a result of the fear of heightened regulation for landlords, many have left the traditional market and turned to tourist rentals or temporary accommodation instead, which are far more lucrative. 

This has had the opposite effect, increasing rental prices instead of stabilising or decreasing them.

READ MORE: Why landlords in Spain leave their flats empty rather than rent long-term

Seasonal contracts and room rentals allow landlords to raise prices every six or nine months and they not subject to the price limitations of the housing law.

The idea of this new law was to try and set the maximum duration of a temporary rental contracts at six months in order to avoid this, but it could have potentially also caused problems for many who need this type accommodation such as students, digital nomads, those living here on a short term basis etc. 

During the debate, Sumar’s spokesperson, Íñigo Errejón, defended the law saying that it is a “solvent”, “fair” and “precise” proposal, which will help “correct an abuse” and “close the gap through which “Landlords can use to avoid the LAU (Urban Leasing Law) and rent regulation”.  

Far-left party Podemos blamed the ruling PSOE for having left this “hole” in the housing law, but also agreed that the restrictions on temporary accommodation were needed to try and rectify this.

READ ALSO: Has Spain’s Housing Law completely failed to control rents?

Junts (Catalonia’s main pro-independence party) and the PNV, the Basque nationalist party, were firmly against it. They agreed that the problem must be solved and that “accessible decent housing was needed”, but raised the situation of students, interns, residents or workers who need housing for flexible periods.

Junts party member Marta Madrenas warned of the harmful effects that this limitation on temporary rentals can have for university cities such as Girona.

Vox and the PP meanwhile argued that they don’t want to help cover up the mistakes made by the left with regards to the Housing Law.

Vox deputy Ignacio Hoces stated that the increase in seasonal rentals has occurred due to the “failure” of the Housing Law, since this has caused rental prices to “skyrocketed” by 13 percent and the supply to be reduced by 15 percent.

Temporary accommodation, referred to as alquiler temporal or alquiler de temporada in Spanish, is considered to be anything that’s longer than a month but shorter than a year, middle ground between short-term and long-term rentals. It is also referred to as monthly accommodation or seasonal accommodation.

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