Housing crisis, clash already underway in EU Parliament. For the socialists, EPP’s draft report “is unacceptable”

Brussels – Nine months after the establishment of the Special Committee on the Housing Crisis (HOUS) in the EU Parliament, a political battle is already underway over the housing emergency. For the socialist family—which counts Dem Irene Tinagli as head of the HOUS commission and Danish Dan Jørgensen as head of the portfolio at the European Commission—it is a top priority. But the drafting of the report that will contribute to the construction of an EU plan for the House has been entrusted to the popular Spaniard Borja Giménez Larraz, and for S&D, the first draft “is unacceptable.” 

The document, dated September 15, will now be reviewed by other political groups to finalise the text, which is expected to be presented to the European Parliament plenary session next spring. The assumptions suggest that the work will be anything but easy. The draft presented by Giménez Larraz, seen by Eunews, revolves entirely around the assumption that “the main cause of the housing crisis is the insufficient supply of housing.” It therefore focuses on removing the obstacles and “red tape” that “undermine the competitiveness of the construction and renovation sectors.” 

The problems to be addressed in the housing plan promised by Jørgensen, recalling that “the Union cannot and should not take the place of the member states in the management of housing policy,” for the EPP are “the limited availability of building land, the lengthy processes for issuing building permits, legal uncertainty, the impact of EU legislation in areas such as energy compliance, the excessive tax burden on housing construction and the increase in material prices, which have further contributed to the rise in construction costs.” 

For the EPP, densely populated areas—several European capitals have joined to ask Brussels for urgent action—must “make efforts to improve the availability of building land” and member states should “adopt integrated approaches that reconcile environmental and economic objectives.” At the same time, Giménez Larraz suggests “promoting an efficient and incentive-based tax system”: tax relief, flexibility in landlord-tenant relations and “absence of controls on effects” have “proved beneficial.” Conversely, the EPP argues that policies such as “price controls and strict market interventions are ineffective” as they “create uncertainty and discourage investment.”

 The recipe is thus quickly made: simplify and build. And to close the equation, fight “squatting” and “the phenomenon of non-payment of rent by tenants who violate their obligations,” which constitute “an attack on private property, our values and fundamental rights,” and generate “a reduction in supply.” 

Today came the response, in very heated tones, from the Socialists, “who brought the housing issue to the forefront of the EU agenda and fought hard to establish” the special HOUS committee. The S&D denounce “a blatant disregard for the working methods and ethics of this assembly.” The key issues of the progressive family “are completely absent”: speculation, short rentals and overtourism, and strategies for vacant housing. “Rent controls are only mentioned to denounce them,” the S&D note points out. 

Gaby Bischoff, vice-president of the group, makes the point: “We want more EU investment in affordable and decent housing. We want proper regulation of short-term rentals, so that our cities are places to live and not just tourist destinations. We want an end to speculation and financialisation. We want to strengthen tenants’ rights, protect the housing rights of the most vulnerable and eliminate homelessness. We want a solid relationship that really makes a difference for our citizens.”