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

Background

The EESC own-initiative opinion on the cost-of-living crisis focuses on quality jobs and clean, affordable energy production in Europe, ensuring that no one is left behind, especially regarding mobility and energy poverty. This requires investment in infrastructure, competitiveness and essential public services.

According to Eurostat data from October 2024, rents increased by 3% over the past year, while house prices rose by 2.9% and have more than doubled in nine EU Member States since 2010. Rents increased in all but one Member State, with the highest rises in Estonia (+203%), Lithuania (+178%), Ireland (+106%), and Hungary (+104%). As a result, many people are cutting back on spending, particularly on public transport.

Our economy is still heavily dependent on fossil fuels and this is linked to many current crises. In order to reduce housing costs and address the cost-of-living crisis, good housing policies are crucial. However, to maintain living standards, other approaches are needed which guarantee access to quality public services like healthcare, childcare, education, water supply, transport, and energy.

Spending 40% of income on housing is a real problem especially for people with significant healthcare and transport needs, unless these services are affordable. Affordable public transport and a secure energy supply are vital for an equitable transformation of our transport system and economy.

The impact of inflation on households is also heavy and remains strong, although inflation is easing, with rates falling to 1.8% in September 2024.

Key points

• The rising cost of living has impacted competitiveness and social costs. 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.
• The EESC advocates greater scope for long-term investment in social infrastructure and emphasizes the importance of public investment in accessible and affordable housing.
• 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.
• The special rules for SGIs and services of general economic interest (SGEIs) regarding state aid and public procurement must be thoroughly revised.
• Public transport plays a crucial role in safeguarding high-quality, universal and affordable mobility. Social and ecological investments in multimodal and interconnected public transport are therefore needed.
• Addressing energy and transport poverty requires clear definitions, binding targets, and exchange of best practices.
• The Social Climate Fund and social climate plans are vital tools to combat energy and transport poverty. The EESC 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.

Additional information

Section: Transport, Energy, Infrastructure and the Information Society (TEN)

Opinion number: TEN/846

Opinion type: Own-initiative

Rapporteur: Thomas Kattnig (Group II - Austria)

Date of adoption by section: 7 April 2025

Result of the vote: 72 in favour, 1 against, 8 abstentions

Date of adoption in plenary: 29-30 April 2025

Result of the vote: 154 in favour, 13 against, 26 abstentions

Contact

Marco Pezzani

Press Officer

Tel.: +32 2 546 9793 | Mob: +32 470 881 903

E-mail: marco.pezzani@eesc.europa.eu

Ágota Bazsik

Administrator

Tel.: +32 546 8658

E-mail: agota.bazsik@eesc.europa.eu