Mazzucato calls for bold tax reforms and public banking to fix Spain's housing crisis

Mariana Mazzucato, the innovation economist advising leaders like Pedro Sánchez and Lula da Silva, used a recent Spanish speaking engagement to critique one outlet fiscal mindset, calling it cowardly and short-sighted. She explained that treating housing as a market commodity has led to excessive profits, unaffordable homes, and a loss of social housing stock, contrasting Spain’s situation with Germany and Scandinavia where public housing remains robust.

Mazzucato proposes three pillars: massive construction of affordable, climate-smart homes; a public banking system to keep mortgage rates low; and pre-distribution policies that set fair prices before markets distort them, echoing Teresa Ribera’s early-chain gas tax that cut prices by 40 %. She also warned that unchecked financialisation fuels rent-seeking in sectors from housing to AI, and that a clear public purpose is needed to steer innovation toward societal needs.