European Commission Announces Sweeping Housing and Short-Term Rental Policies
The European Commission will present a 'European Plan for Affordable Housing' before the end of the year and advance a new legislative initiative to regulate short-term rentals, announced President Ursula von der Leyen during her State of the Union address in Strasbourg. These measures are part of a broader strategy to deepen the single market by 2028 and address what she termed a crisis that 'destroys the social fabric of Europe'. The policy objectives aim to increase the supply of affordable homes and create a more transparent framework for tourist accommodations, with significant implications for member states like Portugal that are grappling with intense housing pressure.
The housing plan will be a central pillar of the Commission's social policy agenda. According to von der Leyen, the initiative will necessitate a revision of the bloc's state aid rules to permit more robust government support for housing construction and the development of student residences. This signals a potential shift in how public funds can be deployed to alleviate market shortages. The announcement follows years of advocacy from cities and housing organizations for more EU-level intervention. A European housing summit will also be convened to coordinate efforts among member states and stakeholders, aiming to transform the right to housing from a principle into a tangible reality for citizens.
The legislative proposal on short-term rentals is another key component of the strategy. It seeks to harmonize rules across the EU, addressing the significant impact of platforms like Airbnb on housing availability and affordability in major tourist destinations. While specific details of the legislation were not disclosed, it is expected to focus on data sharing between platforms and public authorities, as well as standardizing registration and compliance procedures for property owners. This move is intended to provide local governments, such as the Lisbon City Council, with better tools to manage and oversee the rapid growth of the short-term rental market within their jurisdictions.
These housing-focused policies are embedded within a comprehensive 'Roadmap for the Single Market until 2028,' which also targets capital markets, energy, and telecommunications. Von der Leyen stressed the importance of private sector involvement in achieving the EU's goals, announcing a new partnership to create a multi-million euro fund for investing in European technology scaleups. 'We need clear political objectives,' she stated, underlining that 'only what is measured gets done.' The strategy also includes a 'Battery Booster' package of 1.8 billion euros to enhance Europe's battery production capacity and an 'Industrial Accelerator Act' for other strategic sectors.
The President's speech highlighted the interconnectedness of economic competitiveness and social cohesion. The housing crisis, she argued, not only 'weakens cohesion' but also 'threatens competitiveness.' The proposed measures reflect a dual approach: fostering economic growth through strategic investments while implementing social policies to ensure that growth is inclusive. The plan to eradicate poverty by 2050 and a 'Quality Jobs Act' were also presented as part of this integrated vision for Europe's future. The upcoming policy proposals will now be developed by the Commission before being negotiated with the European Parliament and the Council, representing the governments of the 27 member states.
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