Local leaders and EIB join forces to pool public and private funds for affordable houses

This article is published in association with European Investment Bank.

European Investment Bank, regions and cities on 2 July discussed the EU’s housing policy with President Calvino, Members of the European Parliament and associations. During their debate in a plenary session of the European Committee of the Regions, they also voiced concerns that the next EU budget will weaken EU support for social, energy and climate projects

Local and regional leaders stated that it is now time to move from political ambition to concrete investment and delivery of new affordable and environmentally sustainable housing, during the debate.

The assembly was addressed by Nadia Calviño, President of the European Investment Bank (EIB), Irene Tinagli, (S&D/IT), Chair of the Special Committee on the Housing Crisis in the European Union and Member of the European Parliament, Borja Giménez Larraz, (EPP/ES), Member of the European Parliament and rapporteur on the housing crisis on the EU, and Marco Corradi, President of Housing Europe.

Regions and cities underlined that local and regional authorities (LRAs) are addressing the housing crises on their territories and are ready to deliver solutions on the ground that reflect territorial diversity. However, they need better access to financing and adequate EU support.

Local and regional leaders highlighted the key role of the EIB, which provided around €5 billion in housing financing in 2025 and which is central to the implementation of the Pan-European Investment Platform created on the basis of the European Affordable Housing Plan. The platform aims at supporting collaboration between public authorities and private investors so that they can pool resources and scale up investment in housing supply across the EU. In her speech, President Calviño confirmed the EIB Group’s intention to further increase investment in housing, to 6 billion euros in 2026.

Regions and cities stressed that stronger cooperation between the EIB and LRAs will be key to advancing the Pan-European Investment Platform and to improving access to EU funding. They welcomed the signing of a Memorandum of Understanding (MoU) between the CoR and the EIB during the plenary session by the President of the European Committee of the Regions, Kata Tüttő, and the EIB Vice-President, Marek Mora. The agreement lays the foundations for closer cooperation on housing, regional and urban development, the ‘just transition’ and cohesion, innovation and competitiveness, climate and energy, preparedness and social infrastructure and other shared priorities.   

The EU’s assembly of local and regional representatives stressed that meeting Europe’s housing needs will require substantial and sustained investment. According to European Commission estimates, around €153 billion per year will be needed to fund the construction of approximately two million homes annually across the EU. They therefore emphasised the need to mobilise public and private financial resources, at local, national and European level.

CoR members called for housing to remain a priority in the EU’s next long-term budget (2028-2034). A strong, reinforced Cohesion Policy could help deliver more affordable housing across Europe, but local leaders warned of the risk of housing having to compete for funding with agriculture, competitiveness, sustainability and other policies covered by the future National and Regional Partnership Plans.

Quotes:

Kata Tüttő, President of the European Committee of the Regions: “Europe’s housing challenge is not simply about building more housing units. Where urbanisation is accelerating, we need to plan and build neighbourhoods with the right infrastructure: public transport, green spaces, energy, water, care services and the public facilities that make communities liveable. At the same time, European investment must also support regions tackling depopulation and creating opportunities for people to stay. This is why housing policy, urban planning and EU investment should not be separated. Cohesion policy is already delivering this integrated approach, while the European Investment Bank can help mobilise the scale of investment that Europe’s cities and regions now require.”

Nadia Calviño, President of the European Investment Bank: “Investing into resilient cities and regions, into cohesion and housing are strategic priorities reinforcing European competitiveness and economic growth. As Europe’s investment engine, the EIB Group is bringing opportunity where talent is, in each and every corner of our Union, with projects that turn the idea of Europe into impact that people can feel and partners can trust.”

Irene Tinagli (S&D/IT), Member of the European Parliament and Chair of the Parliament’s Special Committee on the Housing Crisis in the European Union: “Europe’s housing crisis is deep and structural. Addressing it requires investment, better coordination across all levels of government and a shared commitment from European institutions, Member States, regions and cities. The European Parliament will continue working to ensure that housing remains a strategic European priority and that today’s political commitment is translated into concrete results for citizens.”

Borja Giménez Larraz (EPP/ES), Member of the European Parliament and rapporteur on ‘The housing crisis in the European Union with the aim of proposing solutions for decent, sustainable and affordable housing’: “Affordable housing starts with increasing housing supply. Europe must remove the barriers that slow down construction and renovation, while supporting investment and empowering local and regional authorities. The path forward is clear: a Housing Simplification Package, 60-day permit procedures, easier access to construction services, a lower tax burden on housing, and the mobilisation of available land. Only by building more homes and renovating faster can we make housing affordable for future generations.”

Background information:

• The CoR opinion on ‘Role of cities and regions in the EU Affordable Housing Plan’ by rapporteur Jaume Collboni (ES/PES), Mayor of Barcelona (May 2025). Press release. Factsheet on housing with spotlight on Barcelona.
• The CoR opinion on ‘Smart, sustainable and affordable housing as a tool for local authorities to face multiple challenges’ by rapporteur Andres Jaadla (EE/Renew Europe), city councillor of Rakvere (April 2024).
• The European Commission published the European Affordable Housing Plan (EAHP) in December 2025. The European Parliament adopted its own-initiative report on the European Affordable Housing Plan on 10 March.
• The European Commission launched the European Housing Alliance on 12 May 2026.