The European Commission has initiated a public consultation on revising state aid rules to assist member states in providing affordable housing. This revision will address challenges related to housing affordability beyond social housing, according to an official statement.
The aim, as explained by the Commission, is to enable EU countries to support affordable housing more swiftly and easily. The proposal includes creating a new category that allows granting state aid without notifying the Commission.
This new definition focuses on “housing for households that cannot access affordable housing due to market conditions and market failures,” the statement added.
The public consultation is open until November 4 on the European Commission’s website.
Current rules enable member states to support access to housing, particularly social housing for the most disadvantaged, without compensation limits.
However, these regulations do not fully reflect the current reality, as the crisis impacts more layers of society.
EU state aid rules regulate how countries can financially support businesses and economic sectors, ensuring these aids do not distort competition in the internal market through excessive public subsidies, maintaining fair conditions.
Exceptions exist, particularly in situations of public interest.
The European Commission is responsible for supervising and authorizing these supports.
Amid the significant housing crisis in the EU, the European Commission plans to introduce a European Affordable Housing Plan by the end of 2025. This plan aims to complement national, regional, and local housing policies while respecting the principle of subsidiarity, as housing is a member state competence.
The Commission acknowledges the housing crisis challenges in Portugal and aims to address them with this anticipated plan for this year, which includes funding, state aids, and limits on local accommodations.
The community executive seeks to allocate more European Union funds, such as cohesion or long-term budget, to affordable housing. It also plans to review state aid rules for housing projects and regulations concerning tourist rentals.
It is estimated that more than one in four people aged 15 to 29 in the EU live in overcrowded conditions, with many young Europeans leaving their parents’ homes only around or after 30 due to the inability to afford their own housing.
In 2023, approximately one in ten Europeans spent 40% or more of their income on housing and related costs.
The European Union faces a housing crisis, with countries like Portugal experiencing significant increases in home prices and rents, making affordable housing challenging to access, particularly for young people and low-income families.
