VOEB event in Brussels: Affordable Housing – Next Steps and the Way Forward
11 December 2024At a joint event organized by NRW.BANK and VOEB in Brussels, political decision-makers and public banks came together to discuss one of Europe's most pressing challenges: affordable housing. The debate featured Matthias Ecke (Member of the European Parliament), Brigitte van den Berg (Member of the European Parliament), Melanie Kloth from NRW.BANK, as well as EU Commission representatives Agnese Papadia and Jonas Sebhatu.
Here are the key insights:
Definition of Affordable Housing:
The understanding of the term varies significantly among EU Member States, and therefore a uniform European definition is needed. The European Commission emphasized that coordinated action is still in its early stages, with initial steps including a comprehensive mapping of the housing situation in the Member States.
Role of Public and Private Investments:
Decision-makers stressed the need to combine public and private financing. Public banks play a key role in this process.
State Aid and EU Competition Law:
Both EU Parliament and EU Commission representatives emphasized the need to revise EU state aid laws to provide more flexibility in financing housing.
Addressing Diverse Needs:
The European Affordable Housing Plan targets both the middle class and the most vulnerable populations. Panel representatives highlighted regional imbalances between supply and demand, as well as the need to repurpose unused residential buildings.
Challenges and Trends:
External factors, including rising interest rates, population growth, and the energy crisis, are exacerbating challenges in housing. Closer cooperation between public banks and regional actors is crucial to scaling solutions.
The discussion made it clear that a variety of approaches are necessary – from increasing supply and innovative building concepts to stronger collaboration between the public and private sectors.
We thank Sandra Parthie from the German Economic Institute (IW) for moderating the event!