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Regions, cities warn EU budget overhaul could derail affordable housing investment

6 August 2026 at 12:51

Brussels (enr) – Local and regional leaders raised concerns that the next multiannual EU budget risks undermining investment in affordable homes needed to alleviate Europe’s deepening housing crisis.

“Europe’s housing challenge is not simply about building more housing units,” said Kata Tüttő, President of the European Committee of the Regions (CoR), an EU advisory body home to democratically elected regional and local representatives from all 27 Member States.  

At a gathering in Brussels on Thursday, they demanded the EU “move from political ambition to concrete investment and delivery,” arguing that failing to invest now will only put affordable housing further out of reach for millions of Europeans.

As negotiations over the EU’s next long-term financial framework gather pace, cities and regions fear that affordable housing could become a casualty of competing spending priorities as several EU member states seek to cut the European Commission’s proposed €2 trillion budget for ‌2028-2034.

Tüttő called on the European Investment Bank (EIB), the EU’s lending arm, to “mobilise the scale of investment” that cities and regions need to “make communities liveable” by providing essential infrastructure. She cited public transport, as well as energy and water infrastructure, as key examples.

Italian MEP Irene Tinagli, Chair of the European Parliament’s Special Committee on the Housing Crisis (HOUS), said addressing the housing crisis “requires investment, better coordination across all levels of government and a shared commitment from European institutions, Member States, regions and cities”.

The CoR and EIB on Thursday agreed on closer cooperation in key areas including social infrastructure, housing, and energy. The European Investment Bank’s president, Nadia Calviño, said “investing into resilient cities and regions, into cohesion and housing” was a strategic priority.

According to EIB figures, the world’s largest multilateral development bank provided a record €5 billion in financing for housing projects across Europe in 2025. The EIB is targeting an increase to €6 billion this year, Calviño confirmed.

The investments are a contribution to the European Commission’s Affordable Housing Plan, which was launched in December and aims to boost housing supply, mobilise public and private investment, and support Member States and regions in expanding social and affordable housing.

According to the Commission’s estimates, however, the EU needs to build 2 million homes each year to meet current demand, which amounts to an investment of approximately €153 billion per year.

This story was produced by the European Newsroom (enr) in cooperation with the European Committee of the Regions (CoR). The editorial responsibility lies with the enr.

EU Commissioner Brunner says time to lift German border controls

6 August 2026 at 12:24

Brussels (enr) – The European Union’s migration commissioner has renewed his call for Germany to gradually end controls at its internal borders, pointing to falling numbers of irregular arrivals and the bloc’s new asylum rules.

It was now time to gradually abolish internal border controls, Magnus Brunner told members of the European Newsroom (enr) network in Brussels.

The Austrian commissioner said the EU’s external borders were better protected and that irregular crossings had fallen sharply. Frontex recorded about one-third fewer irregular crossings at the EU’s external borders in the first half of 2026 than in the same period last year.

The EU’s new Pact on Migration and Asylum also took effect on June 12. Brunner said member states had begun implementing the rules and that the bloc was already seeing progress.

He welcomed steps by individual countries to ease controls. Checks on the border between Germany and Luxembourg on the Trier motorway have been lifted, he said. He also cited the suspension of controls between Austria and Slovenia.

Germany has had checks at its land borders since September 2024. Former Interior Minister Nancy Faeser ordered them, and her successor, Alexander Dobrindt, intensified them in May 2025. Dobrindt has repeatedly extended the measures, which are currently due to remain in place until September.

Brunner also defended the EU’s new Entry/Exit System, known as EES. The digital system records the entry and departure of travellers from outside the EU, Iceland, Liechtenstein, Norway and Switzerland.

He acknowledged that the system had caused problems at some airports, including in Greece and Portugal, but said: “The system itself works very, very well.”

The system has faced criticism over long queues. The Airports Council International Europe has reported waiting times of up to five hours and missed connecting flights.

Brunner said professional truck drivers from the Western Balkans faced a particular problem because they can currently stay in the EU for no more than 90 days in any 180-day period. He proposed that EU member states and Western Balkan countries negotiate long-term visas on a bilateral basis.

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