The role of cohesion policy in supporting the just transition
This report examines how EU cohesion policy funds can help address the current housing crisis across the European Union. It highlights that while housing policy is primarily a national responsibility, EU investment can play a significant role in ensuring access to adequate, affordable, and sustainable housing for all citizens. The housing crisis affects a wide range of people, including low- and middle-income households, young people, the elderly, persons with disabilities, and those experiencing homelessness. It is particularly acute in rural areas, islands, and outermost regions, exacerbating social exclusion and hindering economic participation. The report calls for increased and more strategic use of cohesion policy funds to support social, affordable, and public housing. It suggests simplifying access to these funds for local and regional authorities, incentivizing private investment, and aligning housing initiatives with the European Green Deal's climate objectives. Key recommendations include doubling funds for affordable housing, developing national housing strategies, and potentially increasing the co-funding rate for specific housing priorities. The report also emphasizes the need for better data collection and a clearer definition of 'affordable housing' at the EU level.
Analysis
The EU is experiencing a severe housing crisis that exacerbates inequalities and hinders fundamental rights, affecting urban, rural, island, and outermost regions.
What changes
- Managing authorities are urged to consider doubling funds earmarked for affordable housing during the mid-term review of 2021-2027 Cohesion Policy programmes.
- A suggestion is made to include new flexible, specific objectives on public, not-for-profit, social, affordable, cooperative, and sustainable housing in the revision of ESF+ and ERDF-CF regulations.
- The Commission is called upon to include ending homelessness and combating inadequate housing as explicit political objectives in the post-2027 Cohesion Policy.
Expected impact
- The housing crisis deepens social exclusion by making access to adequate housing difficult, especially for vulnerable groups, hindering labour mobility and social participation.
- The lack of adequate housing can discourage workers from entering regional labour markets, contributing to regional development traps.
- Legal uncertainties and red tape regarding EU State aid rules are identified as a major obstacle to investing European Regional Development Fund (ERDF) in affordable housing.
Limitations
- The document is a European Parliament resolution and does not contain specific financial figures or detailed implementation plans for all proposed actions.
- The analysis is limited to the information provided in the text; specific details on the impact of proposed changes on individual Member States are not elaborated.
- The document refers to various reports and data sources but does not include the full content of these external references.
Shadow Rapporteurs
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