EU socialists demand long-term funding for accessible housing

European Social Democrats announced at their gathering in Opatija that they will seek to allocate more than €300 billion from EU funds for affordable housing and establish new mechanisms to prevent money laundering through real estate purchases, the office of Croatian MEP Marko Vešligaj reported on Wednesday.

The Socialists and Democrats (S&D) group in the European Parliament presented its key demands at the Opatija meeting, which they want to become part of EU legislation. Among them was Vešligaj’s proposal to establish a European transparency register for all real estate transactions, aimed at preventing money laundering, CE Report quotes HINA.

According to Eurostat, housing prices in the EU rose by 55.4% and rents by 26.7% between 2010 and 2024. Many citizens across the EU struggle to cover rental or mortgage costs, and for some, owning a home is entirely unattainable. High prices also force many to live in inadequate housing, which is often unhealthy, energy inefficient, or overcrowded. Statistics show that in 2023, around 16% of the EU population lived in overcrowded households, and 19.2 million people in the EU lacked minimal conditions for decent housing.

Croatia is similarly affected by multiple housing issues. An analysis conducted by Vešligaj in cooperation with experts this summer showed that one in three households in Croatia lives in spatially inadequate conditions, meaning the overcrowding rate in apartments and houses is 34.4%. This is a result of high housing costs, placing Croatia among the EU countries with the worst indicators. Housing is considered affordable if housing costs do not exceed 30% of a household’s net income. In Croatia, housing affordability has been steadily declining nationally since 2020, with the average household often spending over 40% of its income on housing costs. By 2030, affordability is expected to decrease further by 8.8%.

Social Democrats Demand Significant Increase in Housing Funding

Due to this situation, the S&D group from Opatija calls for a significant increase in EU funding for affordable and decent housing, totaling €300 billion, including €100 billion in grants. This funding must be reliable, long-term, and flexible, say the European Socialists and Democrats, delivered through grants, equity, loans, guarantees, and other tools tailored to local needs without excessive administrative burden.

The goal is for 30% of newly financed housing units to be affordable for low-income individuals and 30% for middle-income households. It should also cover the full range of affordable housing options, particularly rental, public, cooperative, and non-profit models.

The Socialists and Democrats also accepted the proposal of Croatian MEP and member of the Special EP Committee on the Housing Crisis, Marko Vešligaj, to establish a European transparency register for all real estate transactions.

“I am pleased that my proposal was accepted because I believe that creating a European register of all real estate transactions will significantly increase transparency in buying and selling property and reduce potential money laundering practices. We must monitor what money is used to purchase real estate in Croatia because while some hide untaxed and suspicious funds by investing them in cash real estate purchases, others—the majority—cannot afford a roof over their heads. Tax policy changes are also needed to curb speculative practices, such as short-term property flipping for profit, and to launch large investments in affordable, quality, and sustainable housing, especially housing for vulnerable groups and young people,” the MEP said in a statement.

Housing is a fundamental human right, not a profit-making mechanism, concluded the Social Democrat MEP.

The Socialists and Democrats (S&D) parliamentary group, the second-largest political group in the European Parliament, is holding its gathering in Opatija and Rijeka from Monday, September 29, to Thursday, October 2.

In the current European Parliament, the Social Democrats have 136 of 720 MEPs from 25 member states. From Croatia, there are four SDP members: Biljana Borzan, Romana Jerković, Tonino Picula, and Marko Vešligaj.