Social leasing: EU ready to fund pilot projects for low-income households

Brussels – It is called ‘social leasing.’ It is a loan formula designed for those who struggle to make ends meet and, as a result, secure financing. Social leasing, designed for lower incomes, is slowly gaining traction within the EU. It was introduced in France, where the Ministry of the Environment manages it, to encourage the scrapping of the traditional car in favor of electric vehicles. The scheme also exists in Italy. It targets households with an annual income of up to 14 thousand euros. It is a useful tool, but currently, the European Commission has no plans.

Roxana Minzatu, Executive Vice President of the Commission and responsible for Social Rights, however, wants to clarify that Brussels is not closing the doors to this instrument, which she acknowledges as important as “it has the potential to become an innovative tool for achieving social objectives and sustainable development,” she explains in response to a question on the subject. However, the core issue is that it is a new instrument, making any discussion premature.

​“Considering that it is a relatively new model, the Commission is not currently planning a framework of guidelines on social leasing,” Minzatu said. Is the discussion closed, then? No, because “it is possible to fund pilot social leasing projects at a European level via the existing funding mechanisms, such as the European Regional Development Fund (ERDF) and the European Social Fund Plus, subject to such initiatives meeting the necessary criteria of these funding mechanisms.” 

States and regions are therefore encouraged to put forward proposals to address the needs of the over 71 million European citizens whose economic situation is precarious or challenging – a reality that spares no one, including Italians.