Spain's coalition government is embroiled in a heated debate over a comprehensive fiscal reform, with the focus on addressing the country's pressing housing crisis.

Yolanda Díaz, Spain's Second Vice President, has criticized the majority partner, PSOE, for resisting a full-scale tax overhaul.

The proposed reforms aim to increase tax progressivity, harmonize territorial tax policies, and address housing accessibility and rental prices.

Sumar, a coalition partner, is pushing for significant changes, including higher taxes on large inheritances and wealth, and stricter regulations on tourist properties.

Meanwhile, the housing crisis has become a central issue, with progressive allies like ERC, Podemos, and Bildu demanding immediate government intervention.

The PSOE advocates for a balanced approach, combining public and private sector efforts.

The debate underscores the urgency of reforming Spain's fiscal and housing policies to meet growing public demands.