The European Parliament has presented a comprehensive package of solutions aimed at halting the escalating housing crisis in the European Union. MEPs are advocating for the introduction of a super-reduced VAT rate on construction materials and shortening administrative formalities to a maximum of 60 days. According to the latest report, member states need the immediate construction of at least 10 million new dwellings to meet current citizen needs and stabilize the rental market.
Construction of 10 million homes
The European Parliament warns of the urgent need to immediately expand the housing stock across the entire European Union.
VAT reduction
The project envisages lowering VAT rates on construction materials and services to reduce investment costs.
Fight against bureaucracy
The maximum duration of administrative procedures for issuing building permits is to be shortened to 60 days.
End to property squatting
New EU guidelines are intended to force member states to adopt a stricter approach towards individuals unlawfully occupying properties.
The European Parliament has adopted a resolution intended to become the foundation of the Community's new housing policy. The main premise is a radical acceleration of investment processes by reducing bureaucracy and introducing tax incentives. MEPs point out that the lack of affordable housing has become a barrier to development and a source of social problems in many European metropolises. Among the key proposals is the introduction of a super-reduced VAT on the construction and renovation of homes, which is intended to directly lower the costs of new investment projects. The document prepared by the EP emphasizes the need to combat abuses in the rental market and the problem of illegal occupation of properties. The European Union intends to force member states to tighten regulations concerning evictions in cases of unlawful property seizure, so-called squatting. At the same time, experts call for increased oversight of speculative practices that artificially inflate rents in city centers. It is estimated that the housing gap across the entire Union currently stands at 10 million dwellings. To bridge it, not only financial support from EU funds is necessary, but also a simplification of administrative procedures to a level guaranteeing the issuance of a building permit in no more than two months. The European real estate market has been grappling with record price increases since the 2008 financial crisis, leading to a situation where in many EU capitals, rental costs exceed 50% of household incomes.At the same time, other significant economic and social news arrived from Spain. Barcelona announced a doubling of the tourist tax, becoming one of the most expensive cities in Europe in this regard. Meanwhile, in the financial sector, the Euribor index stabilized, remaining at around 2.2% in February, raising hopes for a halt in the upward trend of mortgage installments. „La moda es el grito de libertad que la música nunca calla” — European Parliament It is also worth noting changes in Argentine criminal law and significant reports from India, where an agreement on Most Favored Nation status in trade with the European Union for a five-year period is being prepared. New Chinese brands debuted on the Spanish automotive market, heralding increased competition in the electric and hybrid car segment.