De Guindos calls for coordination among administrations to expand housing supply

Former European Central Bank vice-president Luis de Guindos called for the central government, autonomous communities and local councils to coordinate their housing policies to reduce the imbalance between supply and demand, particularly in the rental market. He made the remarks during his address at the 29th National Family Business Congress, held in Madrid.

De Guindos argued that population growth has increased demand for rental housing without a corresponding rise in supply. As a benchmark, he noted that rental homes account for around 20% of Spain’s housing stock, compared with 30% in the euro area. In his view, the involvement of different administrations in housing responsibilities makes a coordinated response necessary.

Immigration as part of a broader assessment

The former ECB vice-president linked some of the population growth to immigration, which he described as indispensable given the demographic situation in Spain and Europe. He also attributed a clearly positive effect on GDP and employment to immigration, while warning of the related pressures on housing and public services such as healthcare and education.

In his address, De Guindos said that two-thirds of Spain’s economic growth can be explained by population growth, and the remainder by productivity. This is his assessment of the growth model, not an independently substantiated conclusion in the coverage. His proposal is to give greater weight to productivity improvements through medium-term policies and agreements that can be sustained beyond political cycles.

Reforms and long-term stability

Alongside housing, De Guindos argued for a stable regulatory framework that provides legal certainty, independent institutions and sustainable public finances. He also called for consensus-based reforms in areas such as education. He linked these proposals to the need for economic growth to translate into greater well-being for households.

The address took place at a congress also marked by business leaders’ calls for calm during the election campaign and for political agreements on the country’s major challenges. In this context, the coordination proposed by De Guindos sets out a shared goal—increasing supply and facilitating access—but the statements reported do not specify concrete measures, deadlines or how action would be divided among administrations.