MEPs supported the plan for affordable housing. There was also talk of the ‘Croatian solution’…

Commissioner for Energy and Housing Dan Jorgensen presented the Commission’s plan to the representatives in Strasbourg, pointed out that “the goal is to use every tool we have at the EU level in order to make a tangible difference for the people most affected by the crisis: working families; young people; those without a home”.

Housing policy is the responsibility of the member states, but the Commission’s plan should help them solve the crisis.

“We have loosened restrictions on state aid so that member states can use more national funds to support access to housing. We are adding European funds to support national funds. We have already mobilized more than 43 billion euros for housing. Now we are doing more, and additional money will come next year from the InvestEU program and cohesion policy,” announced Jorgensen.

He emphasized, however, that the EU wants to exclude speculative investors who will see the wave of investment in housing exclusively as a business opportunity, and that next year the Commission will present a complete European analysis of speculation on European real estate markets and propose further measures.

Strong price growth

According to EC data, the prices of residential real estate in the Union have increased by more than 60 percent since 2013, and the lowest rents by about 20 percent.

Regarding the spread of short-term rentals, which strongly influenced the unavailability of apartments for long-term rentals, Jorgensen announced that the Commission would present a new legislative proposal on short-term rentals. “It will not be a ban; our proposal will help define areas under stress in the housing market. It will enable local authorities to promote affordable housing in their cities and regions and to take proportionate measures to address the negative impacts of short-term rentals,” he said.

The MEPs are satisfied with the adoption of the plan

President of the EP Special Committee on Housing, Irene Tinagli she assessed that the presentation of the “Housing Access Plan shows citizens across Europe that the EU is finally taking practical steps to resolve this urgent social and economic crisis”.

The European Parliament will now continue work on its own report, where it will “highlight the need to stimulate public and private investment, strengthen action for vulnerable groups, prioritize the revitalization of empty buildings and reform the rules to strengthen national, regional and local authorities”, announced Tinagli.

Rapporteur for the Parliament’s report on the housing crisis in the EU, a Spanish citizen Borja Giménez Larraz assessed that the Commission’s plan reflects what the Parliament already advocates for a long time.

“From the very beginning, our report is clear: simplification must lead the EU’s housing policy – reducing administrative burdens, speeding up the issuance of building permits and reducing unnecessary bureaucracy,” said the Spanish MEP.

The special committee of the Parliament for the housing crisis in the EU was established in January 2025 in order to propose solutions for sustainable and affordable housing, and three Croatian MEPs are substitute members of the committee. Marko Vešligaj (SDP/S&D), Proud Bosnian (Mož emo/Zeleni) in Nikolina Brnjac (HDZ/EPP). Bosanac and Brnjac are also the coordinators of their representative clubs for this issue.

Opening the debate in front of her European People’s Party club, Brnjac asserted that “Croatian solutions will be part of the new European framework for short-term rental”.

Short-term rentals in the EU grew by almost 93% between 2018 and 2024, and Brnjac notes that “on several occasions, she presented the Croatian short-term rental management model to the Commission and European Commissioners through our Tourism Act, which is based on data and adapted to local specificities and needs.”

“Today’s Plan shows that these messages have been heeded – especially in the part related to short-term rental. We can say that Croatia’s solutions are becoming a European example of good practice. The model we developed showed that tourism can be regulated without stifling the market, and with the protection of the local population. This is exactly the philosophy we now see in the European plan,” Brnjac pointed out in the discussion.

HDZ’s MEP pointed out in her press release that the Commission’s recommendations for simplifying procedures, faster issuing of permits and starting investments coincide with the adopted package of laws of Minister Bačić, which caused polemics and sharp criticism of the opposition in Croatia, above all the law on spatial planning.

The Greens are looking for clearer protection measures against speculation

The Greens in the European Parliament warn that without clear protective measures “the announced Act on affordable housing will not have a real effect”. and announce that through the Committee on Housing and the European Parliament, they intend to work on turning the plan into real action and “continue the fight against speculation and for the right to affordable housing for all”.

“Courageous measures are needed to solve the fundamental causes of the housing crisis: speculation, financialization and short-term rental, and we want to see a stronger role of cities and regions in solving this crisis. This is a good first step in solving one of the most important crises in the EU, but without binding legal instruments to strengthen the right to housing, the plan remains mainly a framework of intentions and future deadlines”, held by Gordan Bosanac and Zeleni.

In the Možemo debate, the Euro representative of the platform touched on Croatian laws, but, unlike the HDZ representative, as a negative example.

“Precisely in Croatia, under the guise of affordable housing, the Government proposes the simplification of construction to the detriment of cities. (…) Let’s not allow the approach to affordable housing to turn into favoring the chosen ones nor to result in the disillusionment of citizens with European institutions,” he said. referring to the new Spatial Planning Law.

SDP’s Marko Vešligaj recalled in the debate that “apartment prices have increased by more than 50%, rents by 40%, and in Croatia 70% of young people cannot afford to buy an apartment”.

“That’s why I welcome the adoption of this European plan for affordable housing, but we need to be even stronger, even more focused. Yes, we need more funds for public investment in apartments. But also, whether now through the revision of the multiannual financial framework or in the new multiannual financial framework, we need the protection of tenants’ rights, we need clear rules for short-term rent, we need to support young people,” he said.

He added that in addition to students, the plan should pay more attention to “young people who live in rural areas” and called for local and regional self-governments to be “key allies” in solving the EU crisis.