Good news for the squeezed middle?

Abstract

In October 2024, the European Union announced its first commissioner with direct responsibility for housing, as Dan Jørgensen was appointed the EU Commissioner for Energy and Housing. The reactions were mixed. While some voices were positive about the increased focus on affordable housing and the possibility for the EU to support member states in tackling the housing crisis, concerns were raised about the EU interfering in an issue which by nature is national and local.

This paper investigates the possible consequences of renewed EU interference in the housing markets in Sweden and the Netherlands – two countries which have previously changed their legislation for social and public housing due to potential conflict with the EU’s state-aid rules. The paper provides an overview of the responses from political parties and key stakeholders in Sweden and the Netherlands and discusses the potential outcome of a change in state aid rules for the public/social housing systems. The authors call for a focus on the urgent shortage of affordable housing and its negative impact on individuals and society, and argue that politicians should use the opportunity to prioritize long-term systemic impact.

The paper is written by Martin Grander, Associate Professor at the Department of Urban Studies, Faculty of Culture and Society, Malmö University and Marja Elsinga, Professor at the Department of Management in the Built Environment, Faculty of Architecture and the Built Environment, TU Delft.