Commissioner Dan Jørgensen delivered a keynote speech at the EIB Forum on March 6, 2025, outlining his approach to tackling Europe’s escalating housing crisis. Noting significant rises in rent and house prices over the last 15 years, as well as overcrowding and high housing cost burdens, Jørgensen framed the crisis as a multifaceted threat to social justice, economic competitiveness, and cohesion.
A Concrete Policy Framework and Partnerships Jørgensen introduced plans for the European Affordable Housing Plan, slated for early 2026, supported by a newly formed Housing Task Force. This plan aims to catalyse EU-wide cooperation through outreach and dialogue, engaging stakeholders to identify housing priorities. Concrete measures include a European Strategy for Housing Construction to modernise the construction sector by reducing costs, increasing skilled labor, easing Single Market access, and promoting digital innovation. Jørgensen also promised regulatory reviews to accelerate building permits and optimise use of vacant properties, and an assessment of issues like short-term rentals and speculation.
Linking Affordability with Sustainability The speech emphasized synergy between affordable housing and energy efficiency, referencing the recent Affordable Energy Action Plan aimed at combating energy poverty affecting up to 47 million Europeans. The Commission will leverage significant EU funding mechanisms, such as the Recovery and Resilience Facility, InvestEU, and Horizon Europe, with dedicated billions for social housing and energy renovations. Jørgensen stressed plans to encourage Member States to potentially double funds under Cohesion Policy.
Stakeholder Implications For EU regulatory bodies, the strategy means increased coordination and possible adjustments to state aid rules to support housing investments. National authorities face pressures to streamline permitting and engage with EU-level platforms. The construction industry may experience both opportunities through innovation funding and challenges due to tighter sustainability and cost-efficiency demands. Consumers, especially vulnerable groups, could benefit from improved housing availability and affordability but face uncertainties linked to implementation speed. The European Investment Bank and related institutions stand central in the proposed pan-European investment platform to mobilize diverse funding sources.
Jørgensen’s speech represents a shift towards stronger EU cooperation and integration on housing policy, promoting increased regulation and oversight aimed at balancing market competitiveness with social welfare, sustainability, and affordability. While ambitious in scope, many policy orientations require further detail and implementation mechanisms to translate commitments into measurable impacts.
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