EU leaders commit to ambitious housing plan – European summit on the issue in 2026

Brussels – Forward with a European housing plan, as “ambitious” as possible, to respond to the housing emergency and to “support and integrate national efforts” in this regard. For the first time, the Heads of State and Government make a political commitment to housing policies to support families and young people. They do so with a passage put in black and white in the conclusions of the European Council summit, which gives the EU Commission a mandate to develop a clear and targeted strategy. 

The nature of the commitment is vague and entirely lacking detail. The objective is to achieve “affordable housing,” leaving plenty of room for flexibility and imagination. This is not surprising, as the competence in this area is national, and the European Commission will have to limit itself to providing technical, legal, and financial support to central governments and local administrations. There are some guidelines, such as the reference to the broader “context of the simplification agenda,” that could enable fast-track procedures for construction sites or even a relaxation of the rules on state aid —an idea already under consideration. 

Also in the background is the idea of using the European Investment Bank (EIB) for the financing of measures that will inevitably have to be backed by resources. The EIB, as a bank for affordable housing, was proposed by the European Economic and Social Committee (EESC) on the eve of the leaders’ summit, which was called to discuss the issue. Work needs to be done on this specific point, and on the extent to which the EIB can reconcile the increasing need for defense industry support with the commitments already made to sustainability. 

The political agreement of the 27 member states on a European housing plan, in its undefined nature, leaves room for this and anything else the European Commission may come up with as an alternative or addition. The president of the EU executive, Ursula von der Leyen, supplements the leaders’ conclusions with a timetable that already makes next year the turning point. “Strong European coordination will be needed,” which is why “we will convene the first European summit on housing policy in 2026,” she announced at the end of the proceedings. 

The Socialist Antonio Costa, President of the European Council, greeted the result with great satisfaction, because, he stressed at the end of the summit, “the leaders must also focus on the day-to-day concerns of European citizens”, and in this sense, “the accessibility and cost of housing are among the most urgent and concrete issues for millions of Europeans.” It is therefore positive that the EU institutions are “fully committed to tackling this crisis,” because, Costa insists, “we must do all we can to address it.”

The entire Party of European Socialists (PES) rejoices: “Europe’s credibility depends on action“, stresses Stefan Lofven, President of the PES, satisfied with the discussion, commitments, and announcement of the thematic summit. “I thank António Costa for putting affordable housing on the agenda of the European Council for the first time. Too many Europeans face poor housing conditions, skyrocketing rents, and a shortage of affordable homes.”