EU finally takes ownership of housing crisis

The article published by POLITICO and authored by Aitor Hernández-Morales discusses a significant shift in the European Union's (EU) approach to the ongoing housing crisis. Historically, the EU has maintained a hands-off stance regarding housing policy, leaving the matter to national, regional, and local authorities. However, with growing pressures and the rise of far-right sentiments across Europe, EU leaders are now acknowledging the urgent need for cohesive action.

National leaders are set to meet at the European Council summit to address the housing crisis, marking the first time this critical issue will be debated at such a high level. European Council President António Costa emphasized the necessity for leaders to unite and discuss how the EU can contribute effectively to housing efforts. The article notes that previous EU responses have been largely symbolic, with limited actions taken to ensure decent housing for all citizens.

The EU's response to the housing market crisis has been slow, despite rising housing prices across Europe for over a decade. The article highlights that the EU's institutional focus has only recently shifted, particularly in light of the upcoming 2024 European Parliament elections, where center-left groups began prioritizing the issue. Commission President Ursula von der Leyen's appointment of Denmark's Dan Jørgensen as the first dedicated housing commissioner is a significant step towards addressing housing affordability.

Jørgensen is expected to unveil the EU's Affordable Housing Plan in December, which aims to address housing affordability and the issue of short-term rentals in 2026. The European Parliament is also taking action by launching a special committee to analyze the housing crisis and propose measures in the coming months. This collective effort is crucial as national leaders are divided on the best approach to tackle the crisis, which complicates potential agreements.

The article points out that although the crisis is recognized as "pressing," the draft conclusions from national leaders merely suggest the Commission present its already-planned Affordable Housing Plan. Concerns arise regarding the principle of subsidiarity, which dictates that the EU should only intervene if it can achieve better results than local authorities. This raises fears that the Council may preemptively excuse itself from necessary interventions, potentially creating friction with the Commission if it views the Affordable Housing Plan as overly intrusive.

Local leaders, such as Barcelona's Mayor Jaume Collboni, are closely monitoring the summit, advocating for a robust EU response to the housing crisis, which they identify as a major source of social inequality in Europe. In an open letter, 19 politicians from major EU cities requested a clear mandate for the Commission to implement an Affordable Housing Plan that includes essential elements like agile funding, regulatory tools, and decision-making powers for cities.

In summary, the article underscores a pivotal moment in the EU's approach to housing policy, highlighting both the challenges and the emerging commitment to address housing affordability in a sustainable manner.