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

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.

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EU Commissioner Brunner says time to lift German border controls

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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McAllister urges Ukraine to back German proposal for EU associate membership

Brussels (enr) – European Parliament Foreign Affairs Committee Chairman David McAllister has urged Ukrainian President Volodymyr Zelenskyy to support German Chancellor Friedrich Merz’s proposal for an associate membership for Ukraine as it moves towards joining the European Union.

The proposal is an opportunity that Ukraine should seize, the German centre-right lawmaker told members of the European Newsroom (enr) network in early June. Claims that it would amount to “membership light” or second-class membership were incorrect, he said.

Instead, it would allow Ukraine to become more closely integrated into the EU step by step before full membership, making the benefits of the bloc more visible to its people. One possibility would be for Ukraine to participate in the European Parliament as an observer, McAllister said.

Zelenskyy has expressed opposition to the idea, arguing that it would be unfair for Ukraine to be present in the EU but have no say in its decisions. In a letter to EU leaders, he called for the bloc to move faster and not keep Ukraine in a waiting room until full membership.

Merz said earlier that rapid full EU accession for Ukraine, which is fighting Russia’s invasion, is not realistic. For the interim period, he has proposed allowing Ukraine to attend EU summits and ministerial meetings without voting rights.

His ideas also include an associate member of the European Commission without a portfolio or voting rights, associate members of the European Parliament and an associate judge at the European Court of Justice.

Enlargement Agenda

McAllister said EU enlargement was high on the bloc’s agenda and that the Western Balkans were at the heart of Europe. A stable region was an investment in peace and security, he said.

The CDU politician called for each candidate country to be assessed individually and on its merits rather than treating the Western Balkans as a single group. Montenegro was a clear frontrunner, he said, while North Macedonia’s accession path remained blocked by a political dispute with Bulgaria.

Eight other European countries are officially recognised as EU candidate countries alongside Ukraine: Albania, Bosnia and Herzegovina, Georgia, Moldova, Montenegro, North Macedonia, Serbia and Türkiye.

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