March 14, 2025

The following is a press release:

In light of the ongoing housing crisis, local and regional leaders called for a strong involvement of local and regional authorities in the development of the European Affordable Housing Plan, and a substantial increase in investment in social and affordable housing during the meeting of the Commission for Cohesion Policy and EU Budget (COTER) of the European Committee of the Regions on 13 March. They also adopted two opinions stressing that Cohesion Policy is a powerful engine for reforms in the EU and highlighting the vital role of metropolitan regions in driving economic growth.

Affordable housing

During the meeting, COTER members adopted a draft opinion on the role of regions and cities in the EU Affordable Housing Plan, stressing that the post-2027 Multiannual Financial Framework (MFF) must include quality affordable housing as an explicit objective, as well as support the leverage of additional financial mechanisms which will have a crucial role in tackling the housing crisis. Members also urged the EU to take a comprehensive, EU-wide approach to affordable housing, including reforming the 2012 state-aid regulation in order to unlock greater public investment. Recognising the vital role of local and regional authorities in ensuring access to affordable and sustainable housing, COTER members stressed the importance of addressing the diversity of housing challenges facing the Union’s territories, including integrating housing projects into broader urban and rural development strategies to align with public infrastructure needs.

Rapporteur Jaume Collboni Cuadrado (ES/PES), Mayor of Barcelona, said: "The housing crisis affecting millions of Europeans is as pressing as any geopolitical threat. Just as we prioritise defence, we must treat public investments in social and affordable housing as essential for long-term societal well-being and the survival of our democracies. The European Union and its cities and regions must collaborate to unlock investments and address this urgent housing crisis."

Cohesion and reforms

In the draft opinion prepared upon request of the Polish Presidency of the Council of the EU, COTER members voiced the serious doubts already expressed by some Member States and stakeholders on strengthening the existing link between Cohesion Policy and national reforms, replicating the delivery model of the post-pandemic Recovery and Resilience Facility. They highlighted that improvements to better link reforms and investments have to reflect territorial realities and respect the partnership and multilevel governance principles. Focus should be on reforms that are directly related to the responsibilities of sub-national authorities and the investments they undertake.

Rapporteur Isabelle Boudineau (FR/PES), Member of the Regional Council of Nouvelle-Aquitaine, said: “Cohesion Policy is the essential driver for achieving the objectives and reforms of the European Union. It is also the face of Europe in the eyes of its citizens. Enhancing its performance by learning from other instruments should be a priority to facilitate its implementation and strengthen its effectiveness. However, disconnecting this policy from its territorial dimension, particularly by establishing without precaution a direct link with national frameworks or reforms, would be a disastrous mistake that could jeopardise its success.”

Also during the meeting

COTER members also adopted a draft opinion stressing the vital role of metropolitan regions and functional urban areas in driving sustainable investment, economic growth, and social development. With urban populations set to rise from 75% to 84% by 2050, members called for a stronger urban dimension in post-2027 Cohesion Policy. They also emphasised the necessity of reinforcing functional urban areas in EU policies and ensuring stronger collaboration beyond administrative boundaries to address shared challenges such as affordable housing, mobility, and climate change.

Rapporteur Carmine Pacente (IT/Renew E.), Councillor of Milan, said: “The opinion we approved today intents to give indications on the new 'Agenda for Cities', a priority of Executive Vice President Fitto for the new Commission mandate, addressing new challenges such as demographic issues, management of migrants and impact of social disintegration in our urban areas. We call for enhancing the role of metropolitan areas with reward mechanisms for projects that aggregate several municipalities because today's challenges, such as the environment, mobility and housing, concern territories larger than a single municipality.”

The three draft opinions are scheduled to be adopted during the CoR’s plenary session on 14-15 May.

The meeting provided also the opportunity for a debate on the long-term budget of the European Union after 2027. Similar debates are organised by every commission in the CoR to feed a plenary resolution on the topic with different inputs. The resolution is expected to be adopted in the 14-15 May CoR plenary session.

Background

Rewatch the meeting.

The European Commission’s Political Guidelines for the current mandate announced that, in response to the housing crisis currently affecting all Member States, the European Commission will present the first-ever ‘EU Affordable Housing Plan’ in the early part of its new term of office. The future European Affordable Housing Plan is expected to comprise several key pillars, including a revision of the current state-aid framework for social housing, a significant increase of the potential to invest in housing under Cohesion Policy, and a pan-European housing investment platform in cooperation with the EIB.

Contact

Theresa Sostmann

Tel: +32475999415

Theresa.Sostmann@cor.europa.eu

Matteo Miglietta

Tel: +32 470895382

Matteo.Miglietta@cor.europa.eu