Brussels' upcoming plan to combat the housing crisis in the EU will include measures to curb speculation in the real estate market, announced European Commissioner for Housing Dan Jørgensen on Monday, UNN reports with reference to Politico.
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"There is no room in Europe for self-serving speculation on such a basic need as our housing," the EU Commissioner said at a high-level conference on housing affordability in Copenhagen, emphasizing the need to combat the "financialization" of the EU housing stock.
According to Eurostat, housing prices in the EU have increased by almost 60% since 2010, and rental costs by almost 30%. Experts attribute this jump to a sharp slowdown in public housing construction and a noticeable increase in speculative practices in urban areas, where the amount of affordable housing has decreased.
Jørgensen confirmed that the EU's first-ever plan to combat the crisis, which is expected to be presented later this year, will include a review of state aid rules, allowing EU member state governments to use public funds to build housing for middle-class Europeans who are priced out of the market.
Since public funds alone will not be enough, the European Commissioner explained that these funds will need to be combined with private investments. Emphasizing that such investments must "balance stable profitability with social responsibility," he said that the European Commission is working with the European Investment Bank and other financial institutions to ensure that housing built under public-private schemes is truly affordable.
In addition to measures aimed at reducing Byzantine EU and national rules that delay the construction of new homes, Jørgensen announced that the plan will also target short-term rentals.
The conversion of residential properties into tourist apartments is considered one of the main factors driving price increases, and authorities are going to completely ban such properties in places like Barcelona. The European Commissioner promised to address this "complex" issue "decisively but fairly."
"This crisis is a serious test for our European democracy," Jørgensen said. "It's a fight we cannot afford to lose."