EU housing plan to tackle speculation, short-term rentals – POLITICO

Jørgensen confirmed the EU’s first-ever plan to take on the crisis — which is expected to be unveiled later this year — will include a revision of state aid rulesallowing national governments to use public funds to build homes for middle-class Europeans priced out of the market.

As public cash alone will be insufficient, the commissioner explained these funds will need to be combined with private investment. Stressing that such investments need to “balance steady returns with social responsibility,” he said the Commission was working with the European Investment Bank and other financial institutions to ensure homes built through public-private schemes are genuinely affordable.

In addition to measures aimed at slashing byzantine EU and national rules delaying the construction of new homes, Jørgensen announced the upcoming plan will also target short-term rentals.

The conversion of housing stock into tourist flats is seen as a major factor in rising costs, with authorities moving to ban these properties altogether in places like Barcelona. The commissioner vowed to address the “complex” issue “firmly but fairly.”

“This crisis presents a defining test for our European democracy,” Jørgensen said. ” It is a fight we cannot afford to lose.”