EU countries expected to back Commission housing plan – but with caveats

EU countries are expected to endorse the Commission’s Affordable Housing Plan but warn Brussels not to overstep, according to draft Council conclusions seen by Euractiv.

The draft text, dated Monday, stops short of demanding new legislation but otherwise mirrors the Commission’s proposals – with caveats. It supports reviewing state aid rules, including those on Services of General Economic Interest and the General Block Exemption Regulation, to allow governments to support housing projects “faster and simpler”, but only “when appropriate due to market failure”.

It also proposes a “hub” to pool EU funds with private capital and connect cities, developers, governments and investors.

Land use emerges as a particular concern, with member states urging the Commission to help accelerate permitting “without compromising on environmental standards” and, “where appropriate”, reserving land for social and affordable housing providers.

The draft further calls for simplifying “planning, permitting, construction and renovation… while fulfilling EU policy objectives”. It also underlines that “housing policy remains a member state competence” and points to the absence of shared EU definitions of affordable or social housing.

It calls for “suitable and well-balanced” measures to regulate the short-term rental market, “while respecting national contexts, political priorities and regulatory traditions”.

The Council’s Working Party on Social Questions will refine the text on 6 October, ahead of discussion by EU leaders at their 23–24 October summit.

Commission proposals

Commission President Ursula von der Leyen promised to accelerate work on the plan in her State of the Union address on 10 September, a move seen as a concession to socialist MEPs. On Monday, Dan Jørgensen, the EU’s housing chief, outlined the initiative in more detail.

To solve the housing crisis, “we need to harness every solution at our disposal,” Jørgensen said, calling for new legislation on short-term rentals, looser state aid rules, a public–private investment platform to boost financing, and a broad simplification drive.

“It is time to bulldoze through all unnecessary barriers,” he added.

(aw)