EU Parliament clearly tells Commission to allow financing of public affordable housing in EU cities

‍Speculative investment and the abandonment of housing policy to private capital, the lack of investment in public affordable and social housing and the uncontrolled growth of short-term rents are the main causes of the housing crisis in the European Union. This is why we should seize the opportunity and double the cohesion funds for affordable housing,” said in the plenary debate Gordan Bosanac, MP for Mozemo! on the occasion of today's vote on three important Cohesion Policy reports in the European Parliament.

As rapporteur of the Greens/EFA group, MEP Gordan Bosanac participated in the drafting of Reports on the role of cohesion policy investment in addressing the current housing crisis, and in the voted text of the Report number of amendments tabled by Bosanac on behalf of the Greens/EFA Group have been adopted.

The most important are related to the call to strengthening direct financing of local and regional authorities; as well as the call to the managing authorities of the Cohesion Fund funds at national and regional level to seize the opportunity of the mid-term review of the Cohesion Fund programmes in the 2021-2027 programming period in order to at least double the planned funds for affordable housing.

The report also maintains the unequivocal confirmation that cohesion policy makes a strong contribution to the fight against climate change and the implementation of the Green Deal.

In line with previous political activities and Bosanac's focus on linking cohesion and local policy, an amendment was also adopted which calls on the European Commission to avoid centralising funding programmes at national level and to create more opportunities for regional and local authorities to identify and make appropriate use of the Cohesion Fund, particularly in the area of housing.

“Croatia is still at the infamous European top in terms of rising real estate prices, which is a direct consequence of the current housing policy, which HDZ has made a servant of the interests of speculative investors. It is precisely the provision of money and strengthening of power of local and regional authorities to implement affordable housing policies that should replace the proven failure of direct and indirect financing by banks and large private housing investors. This EP report with recommendations opens up space for the Commission to do so,” Bosanac said.

It is the first report voted after the appointment of the European  Commissioner responsible for housing and the establishment of the Special Committee on the Housing Crisis in the EU, pending the publication of the European Plan for Affordable Housing next year, with 462 votes in favour, 142 against and 63 abstentions.

IN Report on the role of cohesion policy in supporting a just transition, the amendments of the Bosanac on behalf of the Greens preserved collective bargaining and respect for workers' rights and the reference to the Just Transition Directive in the labour sphere, which sets out the legislative framework to ensure the creation of quality jobs in the regions affected by the transition.

The report, which was adopted by 519 votes to 99 with 48 abstentions, also highlights how the transition disproportionately affects vulnerable groups due to socio-economic factors, making it difficult for them to benefit from the transition, and that the green and digital transitions must go hand in hand with social justice.

Although one of the objectives of this report was to further strengthen the Fund component in the future European budget, the European Commission's new proposal on the MFF no longer includes Just Transition Fund.

IN Report on the simplification possibilities of the Cohesion Funds stressed that future cohesion policy reforms for the period 2028-2034 must focus on meaningful simplification that benefits local regions and small beneficiaries and respects principles such as shared governance and multi-level governance. It also calls for avoiding excessive centralisation and reducing national rules that increase the complexity of project implementation, with better involvement of local authorities and civil society in governance. It was adopted with 513 votes in favour, 111 against and 40 abstentions.