By Juliane Marie Neiiendam, Vice President of the Civil Society Organisations’ Group

In the face of climate change, urban inequality and a growing housing crisis, the future of living in Europe must be re-imagined – to be affordable, green and inclusive. The European Union now has a unique opportunity to set a global standard for sustainable, equitable housing models, and inspiration can be drawn from pioneering countries like Denmark.

In Denmark, thanks to bold public policies, 20% of all housing is non-profit and managed by democratic housing associations. Copenhagen, for example, combines affordability with green standards in its city planning, using architecture not just to build homes, but also to create resilient, mixed communities.

Yet Europe’s housing future cannot simply be about buildings. It must also be about people, and especially women. Women are disproportionately affected by housing insecurity: they constitute nearly 85% of all one-parent families in the EU. Among these, 48% of lone mothers are at risk of poverty or social exclusion, as stated in the report on Poverty, gender and lone parents in the EU, issued by the European Institute for Gender Equality (EIGE).

Future housing strategies must incorporate gender-sensitive design, prioritise safety, accessibility and community spaces, and ensure women have leadership roles in shaping urban policies.

EESC work on affordable housing

The Danish Presidency asked the EESC to gather civil society’s input for the European Affordable Housing Plan. The EESC marked the beginning of the Danish Presidency with a conference entitled ‘Building green and inclusive – Making our communities future-proof’, in Copenhagen on 2 July. Since then, the EESC has published two opinions on the subject: Affordable Housing: Cohesion policy, Urban agenda and civil society and For a European Affordable Housing Plan – the contribution of civil society. At the EESC plenary session in September, Dan Jørgensen, the Danish Commissioner for Energy and Housing, said that housing represented a major challenge but also an opportunity to make a real, positive and lasting difference to the lives of millions of citizens across Europe.

Our three key messages are:

• affordability must be protected as a right, not left to market forces;
• sustainability must be built in from the outset – through circular construction, renewable energy and smart design; and
• inclusion, especially gender inclusion, must be a foundational principle, not an afterthought.

Housing is more than shelter: it is dignity, security and opportunity. If the EU truly wants to lead the future of living, it must dare to build cities where affordability, green living and inclusivity are not dreams but daily realities.

By the EESC Workers' Group

Housing is a basic human need. Or… housing is a commodity from which to extract wealth. This second reality is seriously undermining the first. In cities everywhere, new developments are frequently seen. In many countries, the number of housing units created easily outpaces population growth, yet for most people, owning their own home remains a distant and unlikely possibility.

This is not simply a question of supply and demand, although pressure on the most desired areas certainly plays a role, particularly as jobs become increasingly concentrated in large cities. With the public sector largely absent from providing social housing, and with rising construction costs, new developments are not built for working or middle-class people to live in. Instead, they are built for investors to purchase, rent, upsell, rinse and repeat the cycle.

At first glance, renting appears to be another path to securing housing, but this too has become increasingly difficult. Tourist and short-term rentals have provided landlords with an easy way to make money from their investments or family inheritances without the need to engage in long-term rental contracts. Shrinking supply and growing demand from jobseekers and people priced out of the buying market have only driven prices even higher.

With no end in sight to this speculative dynamic, many people find themselves facing a perfect storm of high living costs, rising prices for basic goods, and poor working conditions. Moreover, this situation highlights the rapidly deteriorating conditions in our countries: goods and services produced or managed under proper working conditions become unaffordable for most.

As a result, people turn to goods cheaply produced abroad through labour exploitation, while the market offers a never-ending stream of subscriptions that provide entertainment and the illusion of affluence. App-mediated, underpaid services allow the exploited and the exploiter to exchange roles depending on the time of day, while companies cash in. You might not have a house, but at least you can get a soggy fast-food burger made by minimum-wage workers, delivered to your shared apartment by a bogus self-employed ‘rider’ without insurance, for a significant portion of your limited disposable income.

The EU must lead the way in applying pressure, but it is up to Member States, which have the competences, resources and mandate, to change this situation. The alternative is not simply the continuation of the current dystopia, but a deep undermining of fundamental social achievement with potentially catastrophic effects on social cohesion, political stability and the very core of our democratic societies. This is not a prediction – it is already happening. 

By Sandra Parthie, president of the EESC Employers’ Group

Across the EU, housing affordability has reached a critical point. The issue extends far beyond rent or mortgage payments – it is also about rising energy bills, renovation and maintenance costs, accessibility needs and access to essential local services.

But affordable housing is not only a social concern: it has become a major economic threat to EU competitiveness. High housing costs are pushing workers out of some areas and are preventing people from moving, creating barriers to employment and exacerbating labour shortages in key sectors. When people cannot afford to live where jobs are located, regional economies lose vitality.

Rental housing remains indispensable for a large share of the population and continues to offer opportunities for owners. In many Member States, individual savers provide a substantial portion of rental homes, while institutional investors increasingly treat housing as a financial asset. This dual development highlights the need to balance the economic and social functions of housing.

Businesses are ready to be part of the solution. Some employers, for instance, even offer housing for their employees. However, construction costs, material shortages, lengthy permitting procedures and financing conditions have all turned into a challenge.

Affordability constraints are not uniform across the EU, with an urban-rural divide and varying local economic conditions, such as high tourist density and short-term rentals. Hence, there can be no one-size-fits-all solution. Place-based responses that are in line with the subsidiarity principle and the fact that housing is a Member State competence are needed.

At the same time, there are some levers the EU can pull to help address the situation, namely through competition law and its exceptions, such as social welfare law and services of general economic interest. European regulatory requirements on the energy performance of buildings are also contributing to a shortage in the supply of housing units.

With the right commitments, Member States can revitalise supply, strengthen competitiveness and secure affordable housing as a pillar of social and economic stability.

'Russia's war against Ukraine has profoundly affected the Baltic countries economically, socially, and psychologically, and made them re-think their economies, education systems, civil and defence preparedness,' he said. 'The EU’s frontline states are the gate keepers of EU's security and democratic resilience in the current challenging geopolitical context.'

President Boland held bilateral meetings with government representatives in all three countries. These included substantial discussions on key EU priorities including defence and security, competitiveness, enlargement and the EU’s next long-term budget. The President conveyed his vision of putting civil society at the heart of Europe.

'A union of opportunities, security and resilience starts with people. Active participation, informed communities and a vibrant civil society are essential to Europe's future,' he said.

The Estonian Minister of Economy and Industry Erkki Keldo concurred on the importance of engaging in civil preparedness and resilience in the face of challenges posed by Russia's aggression

The Latvian Parliament Speaker Daiga Mieriņa discussed cooperation with social partners and civil society and the importance of Latvia's international commitments on gender equality.

Fighting disinformation, the importance of working with young people, and the key role of media and civic participation in building resilience were at the core of President Boland’s discussion with the Latvian Minister of Culture Agnese Lāce.

In Lithuania, during fruitful exchanges with the Vice-Minister of Foreign Affairs (Minister of Europe) Sigitas Mitkus and the Minister of Social and Labour Affairs Ms Jūratė Zailskienė, President Boland underlined the EESC’s willingness to cooperate ahead of and during the forthcoming Lithuanian Presidency of the Council (in the first half of 2027).

During exchanges with civil society across the three Baltic nations, President Boland made it clear that their voice must be stronger than ever.

'I am very impressed by the bustling civil society in the Baltics and I come back truly energised,' he said. 'The courage, unity and civic engagement in the three countries are an inspiration to all Europeans. This showcase of collective determination mirrors the very values that the EESC represents: democracy, participation and social cohesion in the face of adversity.'

President Boland also met EESC members in Estonia, Latvia and Lithuania and personally thanked them for their support and guidance in helping to make his first high-level visit a success. 

As the newly elected President of the European Economic and Social Committee I reaffirm the Committee's previous call for a strong and ambitious Multiannual Financial Framework that serves not merely as a budgetary tool but critically also as a core driver to deliver the Union's shared objectives while safeguarding the principles of inclusiveness, partnership and democratic participation that lie at the heart of the European project.

While the Commission's proposal for a simplified and flexible budget for the Union follows the right approach to prepare and react to the multilayered challenges Europe is facing, the proposed simplification and flexibility must be matched by guarantees of inclusiveness and accountability.

The Committee warns against the centralisation of the management of key funds at national level - particularly cohesion, agricultural and fisheries funds – which risks undermining subsidiarity, trust and cohesion.

Such an approach could create fragmentation and competition among Member States, leading to "less Europe" instead of stronger cooperation and solidarity in support of long-term convergence across regions.

The effective functioning of the National and Regional Partnership Plans (NRPPs) will depend on their ability to maintain a strong link between EU governance and regional and local partners, who naturally know best the economic and social realities where investments are needed. Empowering these partners alongside social partners and organised civil society is essential to ensure that EU funding is efficient, legitimate, and democratically anchored at every level.

It is also worth noting that the pooling of funds which have separate objectives is not advisable.

All of these factors should inform our approach and suggest a need for careful re-assessment.

On the broader issue of financing, the EESC supports a balanced package of new own resources to strengthen the Union’s financial autonomy and resilience, designed transparently and in a spirit of solidarity among Member States.

I believe that only through a participatory and inclusive MFF – one that promotes the economic and social life of everybody - can we continue delivering a Union of opportunities, security and resilience for all.

Under my leadership the Committee – as the direct voice of civil society at the heart of Europe - will engage fully with the other EU institutions in the coming period to help ensure an outcome that reflects the best of what Europe can be.

I welcome the publication of the European Commission’s Democracy Shield package today, which responds to a long-awaited need to strengthen the Union’s democratic resilience, including to new challenges posed by the impact of technological advancements. This initiative is an important step to ensure that citizens and civil society can engage fully and safely in the life of the Union without fear of external interference or internal pressure.

I also underline that the protection and promotion of our shared European values — including the rule of law, free and fair elections, fundamental rights and independent media — must be at the core of this effort. Defending these values is essential to maintain the trust of citizens and their participation in the Union's democratic process, safeguarding the quality of life for millions across Europe, and projecting our model of democracy outside.

The EESC looks forward to analysing the proposal in detail, engaging in discussions and cooperating closely with the European Commission in the next steps of its implementation, particularly on the Civil Society Strategy. As the institution representing organised civil society, we will continue to bring citizens’ voices to the heart of the Union’s policymaking,  engaging closely with Member States and enlargement countries , to help ensure that democracy in Europe remains strong, inclusive, and resilient.