Europe is preparing an anti-crisis housing plan – what measures is Greece taking?

Housing crisis is becoming one of the most pressing problems in Europe. Young people, even if they have jobs, cannot afford to rent housing, and rising prices outpace any salary increases.

In Brussels A plan that could change the rules of the game is already being discussed: exclude government spending on affordable housing from budget constraints EU.

A similar exception is already in place for defense spending.and if the initiative is approved, states will be able invest in social housing (if they stay of course money after defense spending) without the risk of violating fiscal rules. This could be the first step towards a common European housing policy.

Europe in an era of housing stress

According to Eurostatalmost every tenth European Spends more than 40% of your income on rent or mortgage. The roots of the crisis are multi-layered:

• urban population growth;
• increase in the number of single households;
• jump in construction costs;
• the departure of private developers after the 2008 crisis;
• and, most importantly, financialization of housing — turning real estate into a speculative asset.

Greek version of the problem

Greece today at the epicenter of the crisis. Over the past five years rental rates increased by 45%. Young families have difficulty finding housing for less than 700 euros, even in areas where apartments were considered affordable until recently. Explosion short-term rentals (Airbnb and similar platforms) has taken thousands of apartments out of the long-term market, and new developments are focused almost exclusively on investment projects for wealthy buyers.

The government is taking action: expanding the program “Upgrade and Rent”enters tax benefitspartial rental reimbursementis tightening controls on short-term rental platforms. But experts warn – without increasing housing supply the crisis cannot be overcome. According to experts, the country lacks hundreds of thousands of apartments, and even Bank of Greece indicates in its report that the potential for price increases remains.

Course towards a pan-European strategy

Under development European Commission planwhich will be presented in December, may be the first attempt to create unified housing mechanism for all EU countries. The document proposes:

• limit the uncontrolled short-term rental market;
• increase public and cooperative housing construction;
• revise the rules on government subsidies;
• and allow public investment in the housing sector outside of strict budget limits.

The Minister of National Economy and Finance of Greece said at 6th OT ForumWhat Athens is preparing additional initiatives in this area. According to him, solving the housing problem requires not only financial instruments, but also European coordination – otherwise an entire generation risks being left without a roof over their head.

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