The Government suffered a legislative defeat which signals a sterile legislature.
The PSOE is isolated, and the legislature is collapsing with a weakened government.
Two housing decrees were defeated, reducing the Government's legitimacy.
The absence of a solid parliamentary majority has been noticeable since 2023.
The Government has handled housing reforms in a hasty and populist manner.
Sánchez's total defeat on the housing reforms is a significant setback for the president.
There is widespread support within the PSOE for early elections.
President Sánchez is considering bringing forward electoral proceedings.
Conclusion: The total defeat on housing reforms suggests that Spain is ungovernable under the current Government and supports the need for early elections.