Living-Cost Crisis Threatens Trust in Democracy, Warns EESC President

Brussels: As he reaches the end of his mandate, European Economic and Social Committee President Oliver R¶pke sat down with the European newsroom and spoke of the need for the EU to address the housing crisis. The President of the European Economic and Social Committee (EESC), Oliver R¶pke, warned of bleak consequences for society if housing and rising costs are not properly addressed.

According to Ansa News Agency, R¶pke emphasized that the ongoing cost of living crisis poses a significant threat to the trust in democracy and the capability of Europe to act. In his interview with the European Newsroom, marking the conclusion of his term, R¶pke highlighted the urgency of addressing these economic challenges to prevent the erosion of fundamental standards, rights, and the rule of law.

Eurostat data published in July reveals that since 2010, house prices have surged by 57.9 percent across the EU, with rents increasing by 27.8 percent. Concurrently, wages have struggled to keep pace with these rising costs. The situation is exacerbated by climbing building costs and slowing construction, resulting in fewer new homes entering the market. Additionally, the growing trend of properties being allocated for short-term rentals or bought as investments further drives up prices, particularly in urban areas.

R¶pke acknowledged the complexity of the issue, stating that there is no one-size-fits-all solution. However, as his 2.5-year term as EESC President concludes, he expressed hope that the European Commission will develop concrete proposals, a framework, and an action plan for member states. Although the EESC is an advisory body without formal legislative powers, it has consistently provided housing policy recommendations at the EU level and advocated for increased action on housing.

Despite the EU’s lack of direct control over housing, which leaves decisions on home prices, building rules, and housing policies to individual member states, it can still exert influence. The bloc’s Affordable Housing Plan is slated for introduction in early 2026. In a recent video statement, Dan J¸rgensen, the EU’s first Commissioner for Housing, emphasized the plan’s aim to promote affordable, sustainable, and decent housing for all, urging Europeans to participate in a public consultation on the plan.

The urgency of addressing housing issues has grown since the European Parliament elections, where rising prices and economic conditions were pivotal factors motivating voter turnout, as revealed by the EU Post-Electoral Survey 2024. R¶pke stressed the importance of finding solutions for housing finance, acknowledging the substantial costs involved but warning that inaction would prove even more costly in the long run.

R¶pke concluded by expressing hope for new instruments and highlighted the European Investment Bank’s willingness to advance the housing agenda. He also called for cohesion policy to focus more on affordable housing.