European Parliament Calls for Construction of 10 Million Homes and AI Regulation

The housing crisis has become one of the most serious structural challenges for the European Union, with the latest European Parliament report indicating the need to build as many as 10 million new homes. The document calls for a radical shortening of administrative procedures related to building permits to a maximum of 60 days and the introduction of a super-reduced rate of VAT on construction materials. The situation is particularly difficult in Spain, which accounts for nearly 10% of the EU-wide housing shortage. MEPs are also demanding stricter oversight of rents to prevent abusive practices and a more effective fight against the phenomenon of squatting through stricter eviction laws. Housing problems in Europe have been growing since the 2008 financial crisis, when investment in social housing plummeted and markets in southern countries were flooded with speculative capital. Simultaneously, a dispute over the costs of the green transition is escalating in the economic sector. Italy, supported by some member states, is leading a diplomatic offensive against the ETS system, calling it a "tragic mistake." Minister Adolfo Urso advocates for suspending the mechanism, which he believes acts as a tax hampering the competitiveness of European companies. A group of 150 scientists, including Nobel laureate Giorgio Parisi, holds the opposite view, warning in an open letter that retreating from climate policy will be catastrophic for the environment. Against the backdrop of these disputes, the European Central Bank reported a loss of €1.3 billion for 2025, marking the third consecutive negative result, although the amount is significantly lower than in previous years thanks to interest rate cuts. „L'IA va governata o si rischiano sempre più lavoratori inutili” (AI must be governed, or we risk more and more workers becoming redundant) — Italian Prime Minister Giorgia Meloni The debate over the future of work has also moved to the technology sector. Italian Prime Minister Giorgia Meloni and the president of Confindustria, Maurizio Marchesini, emphasize that artificial intelligence should serve as an accelerator of human work, not a substitute. There is concern that the lack of a proper European strategy will lead to mass layoffs in traditional sectors. In the realm of digital regulation, actions by streaming giants have also been noted – HBO Max announced a crackdown on password sharing, following in Netflix's footsteps. The overall picture of the European economy is completed by Christine Lagarde's announcement of her intention to complete her term at the ECB, which is meant to calm financial markets watching the eurozone GDP dynamics and trade barriers with concern.