Europe needs 'a huge wake-up call' on the housing crisis, EU commissioner says

This resource is a FRANCE 24 English “Talking Europe” interview video featuring Dan Jorgensen, the EU Commissioner for Energy and Housing. Jorgensen discusses EU-level responses to the housing affordability crisis and related policy tools, alongside elements of the Commissioner’s wider energy portfolio.

The interview highlights European Commission figures showing housing pressure across the EU: average house prices have risen by around 60% since 2015, and 1 in 10 Europeans are unable to pay rent or a mortgage on time. The discussion links affordability strain with wider social impacts, including rising homelessness in several member states.

Jorgensen argues that decision-makers across Europe should treat housing as a core “basic need” and describes the situation as requiring a “huge wake-up call.” The interview notes that housing has traditionally been a member-state competence, but that the Commission intends to take a more active role by removing barriers in EU rules and enabling more effective public intervention where markets do not deliver.

A central proposal discussed is changing EU state aid rules so national, regional, and local authorities can more easily support affordable housing. The stated aim is to make public support possible in cases of market failure, so essential workers such as nurses, teachers, and police officers can afford to live in the places where they work.

The interview addresses concerns that loosening state aid rules could advantage member states with larger budgets. Jorgensen responds that social spending choices remain a sovereign decision for each member state, and emphasizes that the Commission’s goal is primarily to ensure EU rules do not block governments from implementing the housing policies they want to pursue.

The conversation points to the growth of short-term rentals in many European cities as a factor worsening housing availability and affordability. Jorgensen describes situations where short-term rentals can become “money factories” for property owners and crowd out residents. The interview mentions possible tools such as caps on nights rented and differentiating between occasional home-sharers and professional operators, while noting that cities and member states should choose specific measures.

The Commission’s goal of ending homelessness by 2030 is discussed in the context of rising need. The interview cites the European Federation of National Associations Working with the Homeless (FEANTSA) estimate that nearly 1.3 million people in the EU are homeless, with numbers increasing in some countries. Jorgensen links progress to increasing the supply of homes and highlights Finland’s “Housing First” approach as a best-practice example the EU wants to help spread.

Alongside housing, the interview covers EU energy security. The EU commitment to stop imports of Russian liquefied natural gas by the end of 2027 is presented as a key objective. Jorgensen states that EU dependence on Russian energy has already fallen from about 45% several years ago to roughly 10–13% today, and argues the remaining reduction is both necessary and achievable, with the decision expected to be implemented through EU-wide legislation.