Brussels is taking significant steps to address the housing crisis, as discussed in POLITICO’s Global Policy Lab: Living Cities. In a recent announcement, the European Commission revealed that EU countries will now have access to up to €15 billion from the bloc’s regional development funds to combat the pressing issue of affordable housing. This move effectively doubles the financial resources available for investments in affordable housing within the EU’s cohesion policy until 2027.
The decision was made during the mid-term review of a substantial €400 billion scheme originally designed by the Commission to bridge disparities between different regions within the EU. However, with shifting priorities towards areas like defense spending and competitiveness, there has been a call to redirect some of these funds towards addressing critical issues such as housing.
Southern EU nations, including Italy and Spain, have shown reservations about repurposing cohesion funds for defense initiatives. The increased allocation specifically for home-building projects is likely to assuage their concerns. Both countries have faced widespread demonstrations due to escalating housing and rental prices, compelling policymakers to urgently expand affordable housing options.
Dan Jørgensen, Commissioner for Energy and Housing, emphasized how doubling the available cohesion funds earmarked for homes highlights Brussels’ dedication to tackling housing affordability head-on. He stated firmly,
“The housing crisis in Europe is one of the most pressing issues where our citizens expect fast action,”
emphasizing its crucial role in maintaining social harmony and economic growth.
Ursula von der Leyen, President of the Commission, has identified this crisis as a top priority for her second term in office. Acknowledging that rising support for far-right parties across the bloc is partially fueled by this issue underscores the urgency of effective intervention strategies. Von der Leyen initially broached the topic of increasing cohesion funding dedicated to housing during her pre-reelection address to the European Parliament last summer.
Looking ahead, it is anticipated that a comprehensive plan will be unveiled by the Commission later this year aimed at bolstering both public and private investments in home construction projects. This strategic initiative holds promise for catalyzing positive change in addressing Europe’s ongoing affordable housing predicament.
In conclusion, as cities evolve and populations grow denser across Europe and beyond, ensuring access to quality affordable housing remains an essential cornerstone of societal well-being and progress. The increased focus on boosting funding for such initiatives signals a vital step towards creating more inclusive urban environments where individuals from all walks of life can thrive.
