The European Parliament has adopted a groundbreaking report on the European housing crisis, estimating a shortage of 10 million housing units. MEPs are demanding the acceleration of administrative procedures to 60 days and the introduction of a super-reduced VAT rate for social housing construction. Simultaneously, Brussels announces a tough fight against illegal property squatting, pressuring member states to tighten eviction regulations and protect private property.
Deficit of 10 million homes
The European Parliament points to a huge housing shortage in the EU and demands simplification of construction bureaucracy.
Fight against squatters
New EU guidelines are to force countries to carry out faster evictions and better protect private property.
Agreement on Gibraltar
The Spanish Foreign Ministry announces the conclusion of talks with London before summer and police presence at the enclave's borders.
Stabilization of the Euribor rate
The reference rate in February was 2.221%, bringing only symbolic relief to borrowers.
The European Parliament has presented a comprehensive strategy to combat the growing real estate market crisis affecting nearly all member states. Official data indicates that to meet current needs, at least 10 million new homes must be built across the community. Spain emerges here as one of the most affected countries, concentrating nearly 10 percent of the entire European Union's housing deficit. MEPs have proposed a so-called simplification package to reduce the duration of official procedures related to building permits to a maximum of two months. Furthermore, Brussels advocates for the widespread application of reduced VAT rates for the social and affordable housing construction sector. The second key pillar of the new policy is a determined fight against property squatting. The European Union intends to force capitals to tighten criminal codes and streamline eviction procedures, representing a significant shift in course and meeting the demands of conservative circles. Simultaneously, the European Parliament warns against abuses in the rental market, demanding greater government control over speculative rent increases. This situation coincides with data on the Euribor rate, which stabilized in February at around 2.22 percent, offering only minimal savings for mortgage holders. Housing problems in Europe intensified after the 2008 financial crisis, when speculative bubbles burst in countries like Spain and Ireland, halting new investments for years. In the diplomatic sphere, Spain continues negotiations with the United Kingdom regarding Gibraltar's status post-Brexit. Foreign Minister José Manuel Albares declared that the agreement should be finalized before summer, and Spanish services will be physically present for controls at the port and airport. Concurrently, southern Spain is grappling with chaos in rail communication, where key AVE connections between Madrid and Córdoba and Málaga have been suspended due to technical reasons, impacting the tourism sector of the Andalusia region. „España no renuncia a reclamar la soberanía de Gibraltar y el acuerdo estará antes de verano” (Spain does not renounce its claim to Gibraltar's sovereignty and the agreement will be reached before summer) — José Manuel Albares From a market perspective, February brought moderate optimism to the Madrid stock exchange. The Ibex 35 index recorded a 2.6 percent increase, recovering some losses from the beginning of the year. Despite slowing inflation, citizens still feel high living costs, particularly in the food sector, which experts describe as a commercial "mountain ride" of prices. Against the backdrop of these events, Iberia airlines have begun negotiations with employees regarding a voluntary departure program, signaling restructuring at Spain's national carrier.
Mentioned People
- José Manuel Albares — Spanish Minister of Foreign Affairs leading negotiations on Gibraltar.
- Friedrich Merz — Leader of the German opposition visiting China.