The Congress will debate and vote on Tuesday a bill proposed by the Parliament of Catalonia for the Society of Management of Assets from Bank Restructuring (Sareb) to allocate 80% of its properties to social rent, aiming to create a social housing fund.
The Lower House will decide whether to consider this law, sponsored by Esquerra Republicana in the Parliament, with the goal of ensuring the social return of the bank bailout, which had a multi-billion euro impact on the State’s coffers.
According to the proposal, the 2008 financial crisis led to an «ambitious» State intervention to restructure the banking sector and ensure liquidity in banking entities and the financial system at a national level, costing over 64,000 million euros, partially assumed by the State through the Orderly Banking Restructuring Fund (FROB) and the Deposit Guarantee Fund (FGD).
However, the text emphasizes that despite the State’s diligent and prompt rescue of the banks, there was no rescue for the citizens, who suffered the consequences of decisions made by banking entities’ leaders before and during the crisis. The law underscores the exoneration of responsibilities of those responsible for the crisis, failing to repair the consequences suffered by thousands of people.
MEASURES OF THE CATALAN PEOPLE’S DEFENDER
In this context, the law includes some proposals put forth by the Catalan People’s Defender (síndic de greuges) to correct the «serious deficiency» in the bank bailout, ensuring a social return to help address the urgent housing needs of the population.
The main proposal is for Sareb to allocate some of its properties to social rent and establish a social housing stock to address the «serious residential emergency situation in recent years.» It also suggests that the society hand over 50% of its developable land.
Furthermore, the law aims to amend the budget stability law so that housing administrations, such as municipalities, can use the money generated from debt savings (surplus) for housing investments, enabling them to exercise the right of pre-emption and retraction in the transfer of homes acquired in foreclosure processes.
