Context and Overview
This item discusses a live-streamed discussion held on March 3, 2025, featuring Dan Jørgensen, the first-ever European Commissioner for Energy and Housing, alongside Members of the European Parliament (MEPs) from a new special committee addressing the housing crisis in Europe. The discussion focuses on how the EU can tackle the growing housing affordability crisis, which affects a wide range of citizens across the continent.
Housing Crisis in Europe
The conversation highlights alarming statistics regarding the housing crisis in the EU. Over the past 15 years, rents have increased by approximately 25% in real terms, and house prices have surged by around 50%. As of 2023, about 10% of the EU population spends over 40% of their disposable income on housing and related costs, indicating a significant strain on household finances. Furthermore, nearly 900,000 individuals are reported to be homeless in Europe each night, underscoring the urgency of the situation.
EU Initiatives and Funding
The discussion underscores various European Commission initiatives aimed at addressing housing shortages and promoting affordable housing solutions. A notable point raised was the allocation of €21.3 billion from the Recovery and Resilience Facility for housing reforms and investments. The Commission plans to double the cohesion policy investments in affordable housing and mobilize public and private investments through a proposed pan-European investment platform in collaboration with the European Investment Bank (EIB) and other financial partners.
Challenges and Legislative Framework
Commissioner Jørgensen acknowledged that housing primarily falls under the jurisdiction of member states, but emphasized the EU's role in facilitating changes and providing support. He pointed out the importance of addressing regulatory and bureaucratic hurdles that slow down housing development, particularly in densely populated urban areas. The need for a streamlined permitting process and the potential revision of state aid rules to encourage affordable housing investments were also discussed.
Sustainable Housing Solutions
The connection between housing and energy efficiency was a significant theme. The Commissioner highlighted the need for sustainable housing solutions that not only improve affordability but also enhance energy efficiency. The EU plans to implement new regulations aimed at ensuring that energy efficiency standards do not lead to increased housing costs for families.
Engagement with Citizens and Stakeholders
Throughout the discussion, the importance of engaging with citizens and various stakeholders, including local authorities, was emphasized. The Commissioner expressed the need for a multi-level approach to policy-making that includes input from all regions and communities, particularly young people and vulnerable groups who are disproportionately affected by the housing crisis.
Conclusion
The meeting concluded with a call to action for collaboration between the EU, member states, and local authorities to develop effective and sustainable housing policies. The urgency of the housing crisis necessitates swift and coordinated efforts to ensure that all citizens have access to affordable and decent housing, which is crucial for the EU's social and economic stability.