Price hikes in transport, energy and housing: the role of quality public services in tackling the high cost of living

Key points

This opinion is part of a wide-ranging package of EESC opinions addressing the various aspects of the cost-of-living crisis in Europe. The package will include seven sector-specific opinions complemented by a comprehensive "umbrella" opinion that will be adopted in July. Together, these opinions will underscore the EESC’s conviction that the challenges and uncertainties confronting the EU demand not incremental adjustments, but a strategic and fundamental shift in Europe’s overall policy approach.

The EU Youth Test at the EESC was applied to this opinion. Youth Organizations Forum was chosen by a group of interested youth organisations to represent all of them during the opinion-making process. 

The EESC:

• underlines that services of general interest (SGIs) can ensure access to essential services for a decent life and can mitigate the impact of inflation and crises due to their non-profit-driven spirit;

• welcomes the Commission’s efforts to make the EU’s budgetary framework more flexible. At the same time, a broader approach to security and defence measures as well as SGIs is needed in order to prioritise growth-oriented public investment and to avoid a trade-off between defence and social spending, especially for countries with limited fiscal space;

• highlights that reducing fossil fuel subsidies can provide short-term support for vulnerable households and more durable solutions for decarbonised electricity and heating systems, renovations and access to affordable SGIs;

• stresses that the special rules for SGIs and services of general economic interest (SGEIs) regarding state aid and public procurement must be thoroughly revised;

• emphasises that public transport plays a crucial role in safeguarding high-quality, universal and affordable mobility, and social and ecological investments in multimodal and interconnected public transport are therefore needed;

• underlines that addressing energy and transport poverty requires clear definitions, binding targets, and exchange of best practices, and that the Social Climate Fund and social climate plans are vital tools to combat energy and transport poverty;

• supports the accelerated expansion of grids and renewable energy through faster and simplified permit-granting processes, efforts to encourage major consumers to generate their own renewable energy and the development of trans-European networks as critical infrastructure.