Ursula von der Leyen wants to tackle housing difficulties in the EU, without much room for maneuver

“Europe is facing a housing crisis,” Ms von der Leyen told MEPs in Strasbourg on Thursday. “People are struggling to find affordable housing. That is why, for the first time, I will appoint a commissioner directly responsible for the housing issue.”

The German conservative elected official, who acceded to a request from left-wing groups, in particular socialists, also announced a European plan for affordable housing, to "unlock the necessary public and private investments".

Enough to respond to growing difficulties on this front in several EU member states.

“Significance of the crisis”

“Perhaps she became aware, during her last mandate, of the importance of the housing crisis sweeping across Europe,” wants to believe Sarah Coupechoux, in charge of European affairs at the Abbé Pierre Foundation.

The Commission had already supported the creation, in 2021, of a European platform to combat homelessness, aiming to harmonize the census of homeless people and develop strategies to reduce their numbers.

In the Spring 2024 Eurobarometer, housing is cited as the number one national problem in three Member States (Ireland, Luxembourg, Netherlands); and among the top three in two others (Portugal, Germany).

Between 2015 and 2022, the price of housing in the Union increased by 47% and that of rents by 18%, in the face of cumulative inflation of 28%. And in 2022, housing represented on average 19,6% of European household expenditure according to the Eurostat organization.

The energy crisis triggered by the war in Ukraine has further aggravated the situation, putting pressure on the budgets, particularly of the poorest households.

It has also, denounced the employers' federations, increased the costs of constructing new housing, causing a slowdown in new production.

What can the commissioner in charge of housing then do?

“There is no mention of housing in the treaties, just as there is no European directive specifically on the issue of housing,” explains Julien Dijol, director of public policies at Housing Europe, European federation of public, social and cooperative housing.

Reversing the “dynamic”

“On the other hand, there are many directives which have a direct or indirect impact on housing”, such as that setting energy renovation objectives.

The Commission could also invest, via the European Investment Bank, in the production of new housing, he said.

“There was a significant drop in public investment in housing production a few years ago. The appointment of a housing commissioner is also, perhaps, to encourage States to reverse the dynamic on the production of housing", explains Sarah Coupechoux.

Cohesion policy, which finances projects for the least developed regions as well as social and industrial transition projects, "can also prioritize projects for people most in need, particularly the homeless." ", she hopes.

From September, negotiations around compliance with the budgetary criteria of the Stability Pact could also be an opportunity to support the production of housing, hopes Julien Dijol, the Commission being able to choose to be more flexible in the budgetary trajectories for the States who would invest in housing.