Europe’s Housing Crisis: The Shocking Truth

INTRODUCTION: THE HOUSING CRISIS

Over the past ten years, housing prices in Europe have risen by 60%, while rents have increased by an average of 20%. These figures reveal a social tragedy for working families across Europe.

Today, for a working family, paying rent or a mortgage is no longer part of a life project: it is an obstacle course. It is their main concern. It is the leading cause of indebtedness. And in major cities, it is almost impossible to cope—we have to spend up to 75% of our salary on rent.

While wages remain stagnant, the real estate market has turned into a casino. Vulture funds, speculation, and tourist rentals are emptying our neighbourhoods and pushing people out of their homes.

Faced with this social emergency, the European Commission has presented its long-awaited “Affordable Housing Plan”. And we must speak clearly about what it proposes… and what it leaves out.

WHAT THE COMMISSION REFUSES TO SEE

The Brussels plan contains several measures: funds to build more housing, financing for renovation, and some proposals to regulate tourist rentals.

Sounds good, right? Well, not really. Because it repeats the same approach as always: injecting public money without touching the rules of the market.

The Commission proposes band-aids but refuses to tackle the root of the problem: speculation. It will provide financial support to Member States… but without demanding anything in return.

  • What is the point of building if land and housing prices continue to be dictated by speculators?
  • What is the point of renovating if, once the works are finished, the flat is sold or rented at twice the price?
  • What is the point of giving subsidies if they once again end up in the hands of vulture funds that profit from speculation?
Housing is not a privilege it's a right

This plan does not solve the crisis. It disguises it. Because Brussels continues to believe that the problem is a lack of housing, when the real issue is that housing has become a commodity rather than a right.

We have also witnessed the shameful presentation of the conclusions of the European Parliament’s Housing Committee. The conclusions propose tax incentives, less bureaucracy, and protection for property owners. It might sound reasonable, but once again they fail to put forward any measure to curb real estate speculation and instead aim to protect vulture funds. They refer to illegal occupations, which in reality have a very low incidence overall—according to various studies and sources, they represent around 0.05%–0.07% of the total housing stock. It is worth highlighting that the group of European Social Democrats voted in favour of these conclusions, unlike The Left group, which voted against them.

OUR PROPOSAL: CONDITIONALITY OF PUBLIC FUNDS

This is why the European Left is putting forward a clear proposal.

If the EU is going to allocate billions to housing, that money cannot be a blank cheque for governments that look the other way while prices skyrocket.

Our proposal is simple: make support conditional.

No Member State should receive a single euro from Brussels unless it commits to doing two essential things:

  • First: public investment.
    Funds must go towards creating a public housing stock—permanent, non-speculative housing with affordable rents.
  • Second: price regulation.
    Member States must legally cap rental prices in high-pressure areas, curb speculation, and finally put limits on the uncontrolled spread of tourist apartments.

This is not an eccentric idea. We already apply conditionality in other areas: if you do not respect the rule of law, you do not receive EU funds. Well, if you do not respect the right to housing, you should not receive them either.

WE NEED MOBILISATION TO CHANGE EUROPEAN HOUSING POLICY — A CALL TO ACTION

Our tax money cannot end up enriching those who push us out of our homes.

Either the EU uses its power to force Member States to intervene in the housing market, or this housing plan will be nothing more than an empty promise.

Housing is not a business. It is a right. And we are going to fight to ensure that European funds come with a clear condition: either you regulate, or you do not get the money.

We want public money (our taxes) to serve the people—not vulture funds.

For a Europe that puts people before speculators. Will you join us?

RELATED NEWS: Do you want to find out more about the European Left Housing Campaign or get involved? Check our dedicated page here.

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