Sevilla City Council has demanded action over the housing protest camp beneath Las Setas after surrounding shops complained of plummeting sales.
The encampment began on September 28 and remains in place more than five weeks later, despite growing pressure from businesses and the council.
It was erected as a response to the eviction of Maricarmen in Madrid, an octogenarian who was removed from her home of 70 years before dying in hospital, sparking nationwide demonstrations and anger.
Municipal spokesman Juan Bueno warned on Wednesday that the authority would consider further measures if the central government’s local representatives failed to respond.
‘We are not going to stand by with our arms crossed,’ he said.
Bueno said the council did not have the powers to evict the protesters itself and accused the government delegation of ignoring its requests.
His comments followed a renewed call from mayor Jose Luis Sanz for the camp’s immediate removal, after a similar protest in Madrid’s Puerta del Sol was cleared.
Local traders’ association Aprocom says businesses around the Encarnacion square have suffered an average 30% decline in sales, with some reporting falls exceeding 45% compared with last year.

Its president, Tomas Gonzalez, said customers and tourists were taking their spending elsewhere.
‘We respect the right to demonstrate, but the rights of retail and hospitality workers in this area must also be respected,’ he said.
The figures are the association’s estimates, rather than independently verified losses.
The Sevilla Confederation of Business Owners, CES, has also called for a swift resolution, citing concerns about cleanliness, hygiene and relations between protesters, workers and residents.
It urged authorities to protect both the right to protest and businesses’ ability to operate.
Meanwhile, camp organisers have acknowledged the financial impact on one nearby kiosk and launched a fundraising appeal to support its owner.

‘Since we began camping here, we have seriously affected the family finances of the kiosk at Las Setas,’ organisers said in a statement.
‘We take responsibility and ask everyone who can afford it to help.’
By midday on Wednesday, the GoFundMe appeal had raised €865 from 49 donations.
‘The last thing we want is to cause problems for an individual trying to get by with their family,’ the organisers added.
