A new governance for housing policy in Europe
The City of Vienna invited European housing stakeholders to a high-level dialogue on affordable housing at Vienna City Hall.
Mayor Michael Ludwig (centre)
In a meeting of high-level European housing stakeholders on 26 April, EU Commissioner Nicolas Schmit stated that the housing crisis has become a European problem, therefore, European solutions were needed more than ever. The results and findings of this in-depth exchange, formed the basis for an Open Letter to the European Parliament, Commission, and Council, emphasising that housing policy should serve the common good and that a systematic monitoring and policy development framework on EU level would be highly recommended. The Letter calls upon the EU to protect its citizens from the effects of crisis and speculation in the housing market, and stresses that EU institutions must make social and affordable housing a priority of their new mandate.
Vienna Mayor Michael Ludwig asserted that strong alliances are necessary to meet the major challenges at EU level, which means involving cities and regions as well as the different stakeholders in the field of social and affordable housing in EU policy development. "We all look back on years of excellent cooperation in various projects and formats. Now, in 2024, is time to set the course for the orientation of future policies at European level. Therefore it was essential to send out a strong signal ahead of the European elections, with the clear message that housing must be affordable for everyone in the European Union."
Housing for the Common Good in Europe
The Open Letter contains recommendations on creating a stable governance framework for housing policy on EU level, e.g. by assigning a coordination role to a Commissioner and setting up a housing expert group in the European Commission. Cities, social and affordable housing providers, tenants and welfare organisations should be structurally integrated in the informal meetings of EU Housing Ministers and their preparatory working formats together with the social partners. Equally, the European Parliament should re-install Intergroups on urban policy, public services and long-term investments in its next mandate.
Regular Housing Summits of all stakeholders in the field of social and affordable housing, including cities and regions, are vital to keep the topic at the centre of attention. All these measures aim to better monitoring the situation, to exchanging good practices and to seeing into better regulation, funding and knowledge on EU and Member State level.
They need to revise EU state aid rules that still limit funding for social housing to a narrow target group to was seen as key to facilitate investment in affordable housing for broad shares of the population. Instruments and formats of the EU Urban Agenda could be used to serve purposes like developing models for revolving housing funds at local and regional level. The Open Letter is available here:
Participants' voices
EU representatives at the high-level stakeholder meeting included Evelyn Regner, Vice President of the European Parliament, and EU Social Affairs Commissioner Nicolas Schmit, who took part online, as well as Ans Persoons, State Secretary for the Brussels Capital Region in Belgium, which currently holds the EU Council Presidency. They were joined by Oliver Röpke, President of the European Economic and Social Committee, and Andrés Jaadla, the Estonian member of the European Committee of the Regions who also serves as the current CoR rapporteur on housing matters.
In addition, the major social and affordable housing providers as well as tenants and welfare organisations, took part: IUT President Marie Linder came from here home country of Sweden, as did the Danish President of Housing Europe, Bent Madsen, and Mikael Leyi, Secretary General of SOLIDAR. Gerry Muscat, Head of Department at the European Investment Bank (EIB), also took part in the work meeting, given that the EIB has been a financing partner in social and affordable housing projects across Europe for many years.
The network of big European cities, Eurocities, was represented on technical level and the Council of European Municipalities and Regions (CEMR) had communicated their full support the positions and conclusions of the meeting. Participants shared their views with Commissioner Schmit and addressed the need for bold action on EU level to overcome the housing crisis in Europe from their different perspectives on the basis of their findings and policy recommendations which can be found here in a summary:
Policy recommendations for affordable housing in Europe (607 KB PDF)
Evelyn Regner, Vice-President of the EU Parliament, emphasized: "There is probably no better place from which we could formulate our demands for the basic right to affordable housing throughout Europe than Vienna. Here we can see in practice how a solidarity-based policy of services of general interest can ensure good housing for all. And this example must set a precedent. Vienna is a recognized European best-practice example. I would like to thank the Mayor of Vienna, Dr. Michael Ludwig, for bringing together high-ranking representatives of the European institutions and stakeholders here today. Our appeal is clear: affordable housing is a fundamental right and housing policy must serve the common good. In the coming years, we must finally create the conditions at EU level that support these goals. In addition to an appropriate institutional anchoring of affordable housing for all as a political priority in the next EU Commission and in the EU Parliament, this also means ensuring better access to EU funding for social housing and, above all, exempting it from restrictive state aid rules. Affordable housing as a political guideline also means advocating a public investment offensive that takes local and regional needs very much into account and implementing strict rules against speculation in housing. The EU must do much more here, and the European Parliament will continue to be a partner in this."
Bent Madsen, President of Housing Europe reminded that, in the light of the European elections of June 2024, it was of utmost importance that European, national, and local policymakers adopt an integrated approach towards tackling both the social exclusion, which has resulted from a lack of affordable housing, and the need to significantly reduce the carbon footprint in the European residential stock. "The initiative of the Mayor of Vienna, Michael Ludwig, to bring us all together to discuss how to create such an enabling framework comes timely to present the proposals of the affordable housing community for the next mandate of the European Parliament and Commission.” The President reminded that the public, cooperative, and social housing sector can play a pivotal role in ensuring a socially and sustainably inclusive future for people in Europe. We are aware that the EU has a wide variety of tools through which it can either incentivise socially inclusive and sustainable housing systems or exacerbate the current housing crisis; however, bold action is needed, as Housing Europe calls for in its Manifesto to lead the way out of the housing crisis.”
Mikael Leyi, Secretary General of SOLIDAR, the European network of Civil Society Organisations with a global reach working to advance social justice through a just transition in Europe and worldwide, highlighted that that his organisation is calling for a comprehensive EU policy framework for a just transition as part of a Green and Social Deal. "We believe that EU policies for decent, affordable and sustainable housing play a central part in this policy framework, which would guarantee that social justice, climate action and environmental protection are advanced altogether.”
Gerry Muscat, Head of the Urban Advisory Division of the European Investment Bank, informed that the new EIB President Calviño has referred to the financing of social and affordable housing amongst the Bank's key priorities, during her February presentation to the European Parliament. EIB lent over EUR 1.3 billion annually to the sector over the past 5 years. "We include it in our Sustainability Awareness Bonds, and we are advising several countries - including now Ukraine - on how to set up the frameworks which underpin long-term financing for the sector. EIB is delighted to be part of the Vienna High-Level dialogue and is keen to continue its close cooperation with partners to help meet the long-term financing needs of the sector."
Housing in Vienna is a best practice model
The Vienna model of social and affordable housing is recognised as a best practice solution among European and international stakeholders. The OECD regularly recommends the Austrian model of limited-profit housing and Vienna as role models for other cities and countries.
The concept of "housing for the common good" (or not-for-profit housing) that has evolved in Austria is becoming increasingly popular as an effective solution to the housing crisis in European and international debates. European and international media regularly publish reports on the Vienna model. Study groups from all parts of the world come to the Austrian capital to learn from Vienna and exchange experience.
What is more, Vienna has always been at the forefront of affordable housing initiatives in Europe. The "Resolution of European Mayors for Social Housing", initiated in 2013 by then Mayor Michael Häupl and his successor Michael Ludwig, who served as Executive City Councillor for Housing back then, marked the start of a success story that now, over ten years later, paves the way for combating the current housing crisis. The City of Vienna has shown on many occasions that housing can benefit the population and the common good over years and decades, implementing projects like "Smarter Together" or "WieNeu+" with EU co-funding, holding the International Housing Expo 2022, and creating a new land use category for "subsidised housing" in the zoning plan. The most recent example are rent caps in municipal housing and an amendment to the Vienna Building Code that prevents subsidised homes from being offered to tourists on the short-term rental market.
Vienna integrates cities as key stakeholders
Vienna has a long-standing tradition of advocacy for cities and regions, stressing that both need a stronger say at EU level. For example, Vienna originally called for annual meetings of EU capitals with the European Commission, which have been held regularly since 2012 as a forum for informal dialogue. Vienna is also active in the European City Network EUROCITIES, and frequently benefits from its membership in the CoR (European Committee of the Regions) to point out urban questions and issues, such as short-term touristic rentals. Vienna was also one of the first cities to be offered a coordinating role in the EU Housing Partnership within the framework of the EU Urban Agenda.
Overall, the City of Vienna has become a strong and active partner representing cities and regions towards the European institutions. In three decades of EU membership, Vienna has informed and contributed to major urban policy decisions at EU level, making sure European policy is more urban and geared to the needs of cities and their population.
Chief Executive Office - European and International Affairs
Contact form