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Housing crisis: The EU can do much more than the construction of new apartments

For less than a decade, the average cost of houses increased by 48% across the EU.

The European Parliament was established by the new crisis committee, and his Chairman Irene Tinagli told Euronews to have a lot of maneuver space.

From the provision of funds to strengthen sustainable and affordable housing to renovation of old buildings, the European Union has tools to resolve a housing crisis in the entire block – but not without political will and cooperation between opposing political groups, Tinagla said (S & D / Italy).

“I see some political groups that already say that perhaps the only problem of building new buildings,” Tinagla told Euronews in an interview in Strasbourg. “I think we can much more, but we need political will.”

“If there is no political agreement on solutions, then there is a risk that we created the illusion that we can do something,” she added.

Tinagli chairs the new special committee for housing, which will work on the development of solutions and recommendations for the first EU commissioner for the living on Jørgensen, whose portfolio also covers energy.

Jørgensen’s mandate for the next four years is involving a pan-European investment platform for affordable and sustainable housing, the adaptation of the state aid rules, presenting the first European residential and development strategy development plan for improving new homes.

“I hope that the European Commission will be ambitious and suggest not only one initiative, but a comprehensive package, because the housing crisis is a multiple question,” Tinagla said.

Between 2015. and 2023. The average price in the EU increased by 48%, while the leases increased by 18% between 2010. and 2022. One of the factors that contributed was the increase in short-term rental, which houses were removed from the market, according to research European Parliament service.

However, the influence of the housing crisis is not alike in all countries and cities, with majorities of Member States, where houses increased by as much as 173% for less than one decade – and others like Finland, where the prices rose only 5% .

“I don’t want to say that the European Union has a magic wand or a solution that suits everyone, because each country is facing a specific situation, but we can offer a deeper understanding of problems and solutions that could function in different contexts,” Tinagli said.

The Parliamentary Committee shall not have legislative power, but it has the task of maps to map housing needs, analyzes existing policies across the EU and works with Member States, cities and regions in developing the solution.

“I see this as an opportunity to gather regional governments and reduce the gap within the EU and among the cities in which people actually live,” Tinagli said.

She also pointed out the importance of understanding the way the housing market works and what went wrong over the years to create the current crisis.

“If you lose sight of the primary goal – providing homes for people – then something went in the wrong direction. Understand this is the most ambitious part, “she said.

Burning problem

And the growing costs of life and economic consequences of pandemic of Kovid were the key factors in the European Elections 2024. The results showed to the right, with the Group of the far right to Europe (PFE), the third largest force in the European Parliament.

From Lisbon to Madrid, citizens went on the streets looking for better working conditions and access to accessible housing. This growing dissatisfaction strengthened political attention on this issue, but also encouraged social unrest.

Analysts suggest that these unrest created a climate that uses extremist parties.

“While the parties to the left center has traditionally handled the housing problem through the lens of inequality and social policies, the Radical Network Parties have begun to use the Migration Policies to resolve the housing crisis,” European Policy Center based in Brussels.

The housing crisis in the EU may have contributed to “feel separatation from the European Union or traditional parties” because people believe that their primary needs are neglected, the Tinagni agrees.

“So, we could turn to those who, despite not doing real solutions or management experience, exploit dissatisfaction for their own political benefit,” Tinagla claims, otherwise the Socialist Eveyor who arrives from Italy.

However, if this crisis serves as a call for awakening for the EU and its politicians, “I don’t think it’s all so bad,” Tinagli concluded.

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