Concòrdia leader Cerni Escalé warns rental subsidies will worsen Andorra housing crisis

Cerni Escalé, the parliamentary leader of Concòrdia, has questioned the government's response to Andorra's housing crisis during the debate on the 2027 budget, warning that rental subsidies will push prices higher and that social mobility has broken down.

Speaking in the general debate on his party's amendment to reject the budget outright, Escalé said housing prices continue to rise, noting that they climbed more than 7% quarter-on-quarter in the third quarter of 2025 and that the median asking rent on property portals now stands at around 2,300 euros, double the level of five years ago. He warned that if young people find it harder to return to the country and older residents leave, Andorra loses both its future and its collective memory.

Much of his criticism targeted direct rental aid and a financing programme intended to cap families' housing costs at 30% of their income. Escalé argued the measure is inflationary, saying direct payment of rents has raised prices wherever it has been tried and that those increases do not reverse when the schemes end. He also questioned whether five million euros is sufficient and whether the policy—aimed at households earning up to 5,400 euros a month—amounts to what he called mass provision of social assistance. "With a median salary, people will have to turn to social aid," he said.

Escalé also criticised spending on the public housing stock, saying the administration paid well above private-sector costs for buying and refurbishing flats, and called for more realistic valuations. He pointed to public debt of more than 1,200 million euros and warned that the largest wave of public-sector retirements in the country's history is approaching without adequate planning, describing the situation as an "institutional Groundhog Day."

On demographics, he said the population has grown from 76,000 to 90,000, adding pressure on roads, healthcare and schools, and asked whether economic growth is actually improving people's wellbeing. He argued the key divide is between those who already hold capital and those who do not.

Susanna Vela, the Social Democrat parliamentary group president, also defended her party's amendment to reject the budget, which she said will reach around 835 million euros—some 85 million more than the previous year. She said the question is not whether more is being spent but on what, and what return it delivers. Vela noted that the allocation for direct construction of social housing falls from about 12 million to 6.7 million euros, a 44% drop, and asked whether this reflects a long-term strategy or a short-term response. "Without sufficient supply, the problem will continue," she said, adding that the SAAS health service budget rises 12.2% to 146.2 million euros but requires a clearer link between resources and results.