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EU Parliament Adopts First Housing Crisis Report Amid Soaring Costs

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EU Parliament Adopts First Housing Crisis Report Amid Soaring Costs
Nyckelpunkter
  • European Parliament adopts first-ever report on EU housing crisis amid soaring prices and rents.
  • Parliament expands bank resolution rules to protect deposits and real estate transactions.
  • EU adopts harmonized anti-corruption framework with overwhelming support.

The European Parliament adopted its first-ever report on the Housing Crisis in the European Union, with 367 votes in favour and 166 against, according to multiple reports. EU house prices have risen by over 60 percent since 2015, according to Eurostat, while rents increased by 28 percent from 2015, multiple reports indicate. In 2025, the ownership rate for 24 to 35-year-olds was down by 6 percent since 2005, and one in ten people in the EU were unable to pay rent, according to multiple reports. This move comes as EU politicians hope to solve the housing crisis with new approaches, though the specific policies remain undefined.

The Parliament also adopted new rules to expand the coverage of EU rules on the orderly resolution of failed banks, broadening the scope to cover small and medium-sized banks, multiple reports confirm. Deposits are protected up to €100,000 per depositor per bank under the EU guarantee, and certain deposits linked to real estate transactions will be protected from €500,000 up to €2,500,000, according to multiple reports. This expansion aims to enhance financial stability and protect consumers amid economic uncertainties.

In a separate vote, the European Parliament adopted new EU-wide rules establishing a harmonised criminal law framework to combat corruption, with 581 votes in favour, 21 against and 42 abstentions, multiple reports indicate. This directive seeks to standardize anti-corruption measures across member states, addressing gaps in enforcement and promoting transparency.

The heads of state or government at the upcoming EU summit are expected to focus on the military escalation in the Middle East and Europe’s response, according to multiple reports. The summit will also discuss the next EU long-term budget, security and defence, the single market, and migration, with United Nations Secretary-General António Guterres joining for discussions on Lebanon, Gaza and the West Bank, multiple reports state. Additionally, heads of state or government will discuss how the EU can continue supporting Ukraine against Russia's aggression, the EU's response to a recent peace agreement in the Middle East, strengthening economic competitiveness, the housing crisis, defence and security policy, and managing migration flows, according to research sources.

On 11 March, Parliament debated the US-Israeli military operation against Iran, its consequences, and the need to support Iranians, multiple reports indicate. Previously, on 12 February, MEPs adopted a resolution condemning the Iranian regime’s violence against its own people, according to multiple reports.

The Transport and Tourism committee adopted proposals to enhance sustainable EU tourism by 33 votes in favour, four against, and four abstentions, multiple reports state. This initiative addresses the concentration of tourism, as 80% of travellers visit only 10% of global destinations, and new EU rules on short-term rentals will apply from 20 May 2026, according to multiple reports.

In upcoming votes, MEPs will decide on postponing certain rules for high-risk AI systems and introduce a ban on AI systems that create sexually explicit images, though the specific rules and enforcement mechanisms are not detailed, multiple reports indicate. Plenary will also decide on greenlighting negotiations on EU returns policy reform, which allows detention for up to 24 months, and adopt new measures to reduce groundwater and surface water pollution, including monitoring PFAS and microplastics, according to multiple reports.

Additional parliamentary agenda items include a discussion on the €300 billion Global Gateway initiative, the EU’s answer to China’s Belt and Road, and a vote on prolonging an exemption to privacy legislation allowing voluntary detection of child sexual abuse material online, multiple reports state.

Political context reveals cross-party agreement on housing scarcity, with Social Democrat Johan Danielsson and Christian Democrat Borja Giménez Larraz agreeing that cheap housing is scarce in the EU, according to multiple reports. The European Parliament meets in Strasbourg next week for votes on defense, housing, and a talent pool, but the Social Democrats do not support the proposal for an EU talent pool due to exploitation risks, according to Johan Danielsson. The meeting also included debates on Europe's dependence on fossil energy, according to multiple reports.

Events in Iran must not lead to a spiral of escalation.

Roberta Metsola, European Parliament President

The last formal European Council meeting under Charles Michel's presidency had an exceptionally full agenda covered in only a day, with the most prominent topic being migration, as EU leaders agreed on comprehensive conclusions, marking a shift in the European Council's approach, research sources indicate. Strong emphasis was put on fighting the instrumentalisation of migrants and on increasing returns, while President Volodymyr Zelenskyy attended in person to present his 'victory plan', which EU leaders did not endorse as such, according to research sources. Zelenskyy's victory plan has five main points: extending an invitation to join NATO, strengthening defence against Russia, adopting a non-nuclear strategic deterrence package, protecting critical natural resources, and replacing some American soldiers in Europe with Ukrainian soldiers, research sources state.

The European Council reiterated previous conclusions condemning Russia's war against Ukraine and expressing unwavering commitment to Ukraine, and EU leaders expressed deep concern about military escalation in the Middle East and called on all actors to show restraint and abide by international law, according to research sources. The meeting's conclusions also address competitiveness, the rules-based international order, hybrid threats, energy prices, COP29 and COP16, fighting discrimination, and situations in Moldova, Georgia, Sudan, Venezuela, Morocco, and Haiti, research sources indicate.

The European Council meeting was preceded on 16 October by the first EU-Gulf Cooperation Council summit with the theme 'Strategic partnership for peace and prosperity', and this was the first European Council meeting for Estonian Prime Minister Kristen Michal and Dutch Prime Minister Dick Schoof, according to research sources.

European Parliament President Roberta Metsola will represent the European Parliament at the summit, addressing heads of state or government at 10.00 and holding a press conference afterwards at around 11.30 on 23 October in the European Council press room and via Parliament's webstreaming or EbS, research sources state. Parliament debated its priorities for the summit on 22 October in a debate with Commission President Ursula von der Leyen and Marie Bjerre, Danish Minister for European Affairs, according to research sources.

On 21 October, Parliament debated a 'reparations loan' to fund Ukraine's reconstruction and defence, unlocking €185 billion in frozen Russian central bank assets, though the details including terms, conditions, and implementation timeline remain unspecified, research sources indicate. On 22 October, MEPs, Council and Commission debated the need for united support to Ukraine and for a just and durable peace concluded on Ukraine's terms, and plenary approved the mandate to start talks with Council on a gradual ban of pipeline and liquefied natural gas as well as on oil and petroleum imports from Russia from 2026, according to research sources.

Under proposed rules, energy operators can invoke 'force majeure' to terminate Russian gas import contracts, and MEPs propose to prohibit temporary storage of Russian-origin natural gas in EU facilities as of 1 January 2026, research sources state. From 1 January 2026, MEPs want to prohibit all imports of Russian oil, including petroleum products, while requiring prior customs authorisation and verification of the country of production, and in a resolution adopted on 9 October, Parliament strongly condemns Russian violations of EU airspace and calls for a united EU response to Russian hybrid threats, according to research sources.

On 24 March 2025, Parliament's Special Committee on the Housing Crisis will host a conference with the Commission to discuss ways to ensure EU citizens can access affordable housing, though the specific measures to be discussed are not detailed, research sources indicate. The conference will be held at the European Parliament in Brussels, Antall building, room 4Q2, from 15.00 to 18.30, organized jointly with the European Commission to address the current housing crisis and explore EU-level measures, according to research sources. It will launch a public debate on affordable housing, with findings informing a Parliament report expected later in the year, and be opened by Committee chair Irene Tinagli and European Commissioner for Energy and Housing Dan Jørgensen, with a press point at 16.00 with Tinagli outside the meeting room, web streamed live, research sources state.

President Metsola meets Yulia Navalnaya at 11:00 during the plenary session in Strasbourg, which includes an address by Navalnaya at 11:30, according to research sources. Metsola signs a Memorandum of Understanding with the President of the Committee of the Regions, Vasco Alves Cordeiro, at 14:15, and during her official visit to Madrid, participates in a Town Hall discussion with young people at 17:00 and receives the Award for European Values from the Foro España Civica at 19:00, research sources indicate.

Historical context shows that in January 2021, Parliament called on the EU to recognise access to decent and affordable housing as an enforceable human right, and as part of its Renovation Wave Strategy, the Commission launched an Affordable Housing Initiative in October 2023, according to research sources. Former Danish Minister Dan Jørgensen is the Commissioner-designate for Housing and Energy, and the procedure code is 2024/2824(RSP), with a Commission statement and no resolution, debated on Wednesday, 9 October, research sources state.

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EU Parliament Adopts First Housing Crisis Report Amid Soaring Costs | Reed News