European Union

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Written by Marketa Pape

While the right to housing is recognised by the European Pillar of Social Rights, the supply of housing in the EU has not kept up with demand. The recent cost-of living crisis has made the lack of adequate, affordable and sustainable housing more palpable. While the responsibility for housing provision lies with EU Member States, regions and cities, the debates around the 2024 European elections showed that citizens expected the EU to step up its action beyond guidance and funding.

In response, European Commission President Ursula von der Leyen made housing part of a Commissioner’s portfolio. In parallel, all EU institutions started work to contribute to the new EU policy.

More than a year later, the basis of a coordinated EU approach is in place. European leaders have for the first time discussed the challenge of affordable housing in the European Council. Existing EU rules have been reviewed and EU funding possibilities made more flexible.The European Investment Bank has stepped up its investment support and, together with partner banks, is finalising a pan-European housing investment portal.

The Commission has put forward the European affordable housing plan and accompanying initiatives, which included changes to State aid rules, a housing construction strategy and a proposed recommendation on the New European Bauhaus policy and funding initiative. The Commission also outlined further steps, including legislative ones.

For its part, the European Parliament has put forward a set of recommendations prepared by its Special Committee on the Housing Crisis, ranging from simpler and digital procedures for granting housing permits – within a 60-day deadline – to tax measures to support low- and middle-income households.

Read the complete briefing on ‘Developing a coordinated EU approach to housing‘ in the Think Tank pages of the European Parliament.

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Written by Alessandro D’Alfonso, Marin Mileusnic and Tim Peters.

CONTEXT

On 16 July 2025, the European Commission adopted a proposal for a regulation establishing a budget expenditure tracking and performance framework and other horizontal rules for the Union programmes and activities (‘performance regulation’), as part of a wide-ranging package on the next EU long-term budget – the 2028-2034 multiannual financial framework (MFF). The proposal aims to simplify and harmonise how EU spending is tracked and its performance measured, moving towards a single system with standardised indicators. It defines horizontal spending principles with a view to streamlining their application across the EU budget: climate and biodiversity, ‘do no significant harm’ to the environment, social policies, and gender equality. Although competitiveness and preparedness play a major role in the next long-term budget, and the European Parliament had requested to include them as horizontal spending principles, the Commission did not include them.

Ahead of the proposal, Parliament had called for further improvements in performance reporting under the EU budget, while underlining that the ‘implementation of horizontal principles should not lead to an excessive administrative burden on beneficiaries’. A stronger performance framework can improve Parliament’s decision-making on EU spending through more transparency. However, increased transparency from a proposed single portal to access EU budgetary data will depend on what information is made available. A briefing requested by Parliament’s Committee on Budgetary Control underlined that improved access to information – such as exchanges between the Commission and Member States, or to information about suspended milestones – was essential for public accountability. According to the European Court of Auditors, the proposal can improve processes for performance reporting and integration of EU horizontal policy priorities, but has design weaknesses to be addressed, including vague indicators, lack of clear results-based linkages, and risks of measuring implementation rather than achievements. The Court estimates that the proposal may achieve simplification between the Commission and the Member States, but that the administrative burden at national, regional and beneficiary levels may remain unchanged or even worsen.

Legislative proposal

2025/0545(COD) – Proposal for a regulation of the European Parliament and of the Council establishing a budget expenditure tracking and performance framework and other horizontal rules for the Union programmes and activities – COM(2025) 565,

NEXT STEPS IN THE EUROPEAN PARLIAMENT

For the latest developments in this legislative procedure, see the Legislative Train Schedule: 2025/0545(COD)

Read the complete briefing on ‘Budget expenditure tracking and performance framework‘ in the Think Tank pages of the European Parliament.

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