The critical aspect of the housing crisis in Europe, which constitutes a key social and economic issue and threatens the cohesion of governments and societies, was highlighted in a discussion Tuesday, during EU Regions Week, which wraps up today in Brussels. The panelists noted that affordable and sustainable housing is the key and projects should be funded that meet the needs of all groups of the society.
The EU Regions Week is held every year and hosts representatives of local communities and regions together with key officials from the all the EU institutions and elsewhere. It includes discussions, workshops and meetings. This year the themes include sustainable development, housing, cohesion programs, EU statistics etc.
The opening event was welcomed by the President of the Commission, the President of the EP and the President of the Committee of the Regions.
The housing panel under the name “Europe’s housing crisis: the role of the EU and cohesion policy” was attended by members of local governments from Estonia and Luxembourg and a representative of the EIB. Ways of addressing it at the local level were discussed, with public-private sector cooperation and financing through special projects from the EIB.
The local councilors stressed that solutions should be provided in cooperation and coordination with local communities, keeping in mind what best serves the citizens and their needs. It was mentioned that plans should be drawn up for affordable housing, for students, single-parent families and vulnerable groups and that it is necessary, along with construction, to have a plan for renovations and the use of empty spaces that could contribute to alleviating the issue.
It was stated that it is unthinkable that in 2025 in the EU there are students living in tents, families with children crammed into 30 sq. meter apartments and people who end up homeless. It was said that based on research, 35% to 140% of family income is spent on rent and that a one-bedroom flat can cost up to 116% of the net salary of an average family.
The panelists referred to the special injustice and a local challenge that, however, requires coordinated action. They noted that there is European funding, but affordable and sustainable housing must be found and the needs of societies must be adequately addressed.
It was also noted that the right to housing is a basic human right and good practices that provide immediate solutions must be found. Reference was also made to the practices of countries adopting the vacancy tax for spaces that remain empty and unused, as well as to the need for a balance between demand and supply.
In response to a question from the Cyprus News Agency about the example of Cyprus where in certain cities there is demand from third-country citizens who can spend much more on buying or renting, resulting in prices skyrocketing, an EIB representative stated that this is considered a ‘market failure’ and that the authorities must regulate it.
It was said that other countries such as Spain, Romania and Luxembourg are also facing similar issues, and that is why the European Commission is preparing plans and wants to draw up policies on the issue of affordable housing. It was also mentioned that Cyprus, in view of its EU Presidency January 1st, wants to highlight the issue as a priority.
Also, an EIB representative stressed that this year 1.4 million building permits were granted at the European level and the needs amount to 2.3 million, meaning we need an additional 1 million new homes in the EU in 2025. It was also said that the EIB increased its financing by 40% for housing projects.
In the context of the EU Regions Week, the Nicosia Board of Tourism organized a “Taste Nicosia” kiosk where Cypriot products, sweets, delicacies, wine and beers were offered to the participants and guests.