The European Parliament has presented a comprehensive plan to combat the growing housing crisis in the European Union, estimating the housing shortage at 10 million units. Proposed solutions include introducing a super-reduced VAT rate for construction and renovation, limiting bureaucracy to 60 days, and a tougher fight against illegal occupation of properties. Simultaneously, data from Germany and France indicates varied inflation dynamics in the largest eurozone economies.

Shortage of 10 million homes

The EU is grappling with a massive housing deficit, forcing coordinated actions at the European Parliament level to increase supply.

VAT tax reduction

Proposed reduction of VAT rates on housing construction and renovation to make them more accessible to citizens with lower incomes.

Fight against bureaucracy

The EU plan assumes that formalities related to the investment process should not take more than 60 days.

Varied inflation in the EU

Germany records a drop in inflation to 1.9%, while in France this indicator increased by 1%, complicating the eurozone's monetary policy.

The European Parliament has adopted a report diagnosing the critical state of the real estate market in member countries. According to EU experts, to meet current citizen needs and stabilize prices, the community must build at least 10 million new homes. This document represents an attempt to develop a common response to drastic cost-of-living increases, although member states remain divided on intervention methods. MEPs have advocated for introducing a "simplification package" that would shorten administrative processes related to issuing building permits to a maximum of 60 days. A key element of the strategy is the proposal to apply a super-reduced rate of VAT on construction materials and renovation services, aimed at stimulating investment and increasing property availability for young buyers. The report also includes controversial provisions regarding property protection and rental regulations. Parliament called for tightening regulations targeting property occupation and accelerating eviction procedures in such cases. Simultaneously, countries were urged to more closely monitor the rental market to prevent abuses and excessive exploitation of tenants. Particular attention was given to Spain, which according to data concentrates nearly 10% of the EU's housing shortages. This situation coincides with the stabilization of the Euribor indicator at 2.2%, which analysts say will no longer bring significant relief to those repaying variable-rate loans. Housing policy has traditionally been the responsibility of national states, but the intensifying crisis in cities like Barcelona, Paris, and Berlin has forced EU institutions to attempt coordinating actions at the community level.Simultaneously, key macroeconomic data arrived from the largest economies. In Germany, inflation in February unexpectedly fell below the ECB's target, reaching 1.9%, mainly due to lower energy prices. Different sentiments prevail in France, where the statistical office Insee recorded a 1% increase in price dynamics. These divergences will be crucial for upcoming interest rate decisions, while capital markets (the Ibex 35 index) closed February with solid gains exceeding 2.6%. „El Parlamento exige un IVA superreducido y un máximo de 60 días de burocracia para construir viviendas.” (The Parliament demands a super-reduced VAT and a maximum of 60 days of bureaucracy for building housing.) — European Parliament

Perspektywy mediów: Liberal media place greater emphasis on protecting tenants from abuses and the need for public investment in social housing. Conservative media highlight the need for a tough fight against illegal property occupation and reducing bureaucracy for developers.

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