Opinion of the European Economic and Social Committee on Housing and regional policy
Date: 2007-03-15
Institutions: European Economic and Social Committee
Subjects: ESC opinion, economic and social cohesion, energy saving, housing policy, regional policy, right to housing

13.7.2007

EN

Official Journal of the European Union

C 161/17

Opinion of the European Economic and Social Committee on Housing and regional policy

(2007/C 161/03)

On 26 September 2006 the European Parliament decided to consult the European Economic and Social
Committee, under Article 262 of the Treaty establishing the European Community, on Housing and regional
policy.

The Section for Economic and Monetary Union and Economic and Social Cohesion, which was responsible
for preparing the Committee's work on the subject, adopted its opinion on 23 February 2007. The rappor-
teur was Mr Grasso and the co-rapporteur was Ms Prud'homme.

At its 434th plenary session, held on 14 and 15 March 2007 (meeting of 15 March), the European
Economic and Social Committee adopted the following opinion by 91 votes to none with one abstention.

1. Conclusions and recommendations

1.4 Housing and the Structural Funds 2007-2013: building on
initiatives, raising their profile and developing technical assistance

1.1
Housing is, above all, a fundamental right, access to
which, in turn, determines access to other fundamental rights
and a life of dignity. It is recognised in the Charter of Human
Rights,
in the Council of Europe's Revised European Social
Charter and in the constitutions of many European states.
Having a roof over one's head is essential if an individual is to
develop as a person and integrate into society.

1.2 The Housing Charter produced by the European Parliament's

URBAN-Housing Intergroup

The EESC endorses the adoption of

1.2.1
the European
Housing Charter by the European Parliament's URBAN-Housing
Intergroup, which notes the large and growing number of inter-
actions between European policies and housing policies as well
as the importance of the right to housing.

1.2.2
Consequently, the EESC calls for the incorporation of
the European Housing Charter in the European Parliament's
own-initiative opinion on Housing and regional policy.

1.3 Strengthening the right to housing

1.3.1
The EESC would like to see proposals at European level
on: a set of common objectives on access to housing; minimum
standards on the quality of housing which define the concept of
it will be difficult to
decent housing. Without these criteria,
establish an effective right to housing — and access to housing
is clearly a minimum condition for a decent life.

1.3.2
The EESC would point out that the social and com-
munity services sector is becoming increasingly important in an
ageing society and that such services are often provided together
with housing, and it calls for these services to be made the
subject of European exchanges and be given a higher profile. It
further notes that social housing must be accorded special treat-
ment and cannot, as such, be subject to market rules, as is
recognised in the Services Directive.

1.4.1
The EESC would stress that the possibility to use Struc-
tural Funds resources to improve housing conditions should be
exploited to the full not only by EU12 countries but also by
EU15 countries, which can use the Structural Funds to finance
operations in the field of integrated urban development. These
initiatives will have a positive impact on social and territorial
cohesion and on economic growth. In this respect the EESC
institutions earmark
would suggest
resources at very low rates for integrated building programmes
for young people, immigrants, older people and the disabled,
thus encouraging worker mobility, improving the social mix and
providing affordable solutions for occupants.

that European financial

The EESC notes

1.4.2
JESSICA
that
programme will provide the elements necessary to set up a guar-
antee fund for larger-scale social housing projects and it calls for
this question to be considered during the mid-term review of
the Structural Funds.

the use of

the

1.4.3
Accordingly, the EESC endorses the introduction of a
technical assistance facility for housing projects during the
in cooperation with representatives and
period 2007-2013,
networks of local and regional authorities and supported by the
European Commission and the Member States. This facility will
make it possible to build on projects and methods for effectively
integrating housing projects in urban regeneration programmes.
It will also enable the pooling of expertise, and could play a
facilitating role in transferring experiences. It would appear to
be of the utmost importance to establish a specific instrument
for housing with the purpose of promoting effective use of the
Structural Funds. This could be done on the basis of Article 45
of the Regulation laying down general provisions on the Struc-
tural Funds by asking the Commission to smooth the way for
the setting up of the technical assistance facility.

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1.5 Housing and energy

poorest (but also for people on low incomes and young people
starting a career and a family).

In addition,

the EESC proposes the creation of an
1.5.1
exchange network around the theme of housing and energy effi-
ciency, where players on the ground could exchange informa-
tion and build on and deepen their experiences, with a view to
putting in place sound and ambitious energy policies. This
facility could be linked to the Structural Funds support facility,
although they would not have the same objectives;
thus it
would essentially be a matter of ensuring the smooth coordina-
tion of these two entities.

1.5.2
The EESC proposes the launch of a campaign to raise
awareness of the potential for energy savings in the housing
sector. The campaign would be conducted at European level in
partnership with networks active in this field, and should be
geared to changing users' behaviour. This approach would
require the participation of the general public and would make
it possible to rally all stakeholders around a positive initiative.
The ‘Sustainable Energy Europe’ campaign lacks the focus neces-
sary to raise awareness and has limited resources.

1.5.3
The EESC calls upon the Commission to submit propo-
sals based on a broader approach than that applied to date,
which focuses primarily on improving the energy efficiency of
buildings. There is a need to work with residents and to take
better account of the existing housing stock.

1.6 Housing and the European institutions

The EESC also supports the European Commission's
1.6.1
initiative to set up an inter-service group on urban issues. The
Committee suggests that the inter-service group include housing
in its remit and that it appoint an interlocutor on this issue.

1.6.2
In addition, it would appear essential that the housing
dimension also be included on the agenda for meetings of
ministers for regional and urban affairs.

2. Reasons

2.1.3
Nevertheless, the Laeken summit in December 2001
recognised the importance of housing issues from the point of
view of avoiding the risk of growing poverty. The EESC there-
fore feels that the summit made a vital contribution by opening
the debate on the need to increase the supply of social housing
in order to combat poverty in Europe.

2.1.4
The right to housing is enshrined in the constitutions
of several EU Member States, including Belgium, Spain, Greece,
Portugal, Finland and the Netherlands. This therefore raises the
possibility of a European right to housing. The EESC believes
that it is important and strategic to incorporate housing into the
Charter of Fundamental Rights appended to the Treaty estab-
lishing a Constitution for Europe and deplores the fact that the
right to housing, or at least the ‘right to accommodation’, has
not been included.

2.1.4.1
The EESC considers the creation of a European
housing strategy to be of the utmost importance: a home for
every individual is a prerequisite for the more effective imple-
mentation of other human rights recognised at European level,
such as everyone's right to ‘respect for private and family life,
his home and his correspondence’ and respect for the right to
‘get married and have a family’.

The principle of the right to housing is accepted. The
2.1.5
in
question then arises as to the enforceability of this right,
other words the recourse available to a person who cannot find
housing. Therefore the EU must be concerned about the condi-
tions for giving effect to the right to housing. If a single solution
cannot be considered, each Member State which formally recog-
nises the right to housing must be able to specify:

— the public authority against which this right can be enforced,

and in what form;

— the resources which must, as a consequence, be granted to

this authority, or which it must equip itself with;

2.1 The right to housing: a fundamental right

— the beneficiaries of this right and the procedures for exer-

cising it;

2.1.1
The EU's Charter of Fundamental Rights, proclaimed in
Nice on 7 December 2000, states that (Article II-34): ‘In order
to combat social exclusion and poverty, the Union recognises
and respects the right to social and housing assistance so as to
ensure a decent existence for all
those who lack sufficient
in accordance with the procedures laid down by
resources,
Community law and national laws and practices.’

2.1.2 Whilst noting that housing does not fall within the
EU's remit and that the subsidiarity principle is fully applicable,
the EESC feels that this article should be taken on board in the
implementation of European policies so as to respond to the
social urgency of the situation and the lack of housing for the

— the content of the right (housing or accommodation, free

choice or not).

2.1.6
In keeping with the European Housing Charter,
adopted by the European Parliament's URBAN-Housing Inter-
group on 26 April 2006, which defines housing as a ‘necessary
good’, the EESC welcomes the EP's initiative to draw up a report
on housing and regional policy. The EESC hopes that the Parlia-
ment will support its request to recognise the right to housing
and will propose a partnership with local and regional adminis-
trations to promote an adequate level of housing and to make
housing affordable for
those who do not have access to market
housing.

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2.1.7
A study on living conditions and the social dimension
of housing (1) published in 2006 by the European Foundation
for the Improvement of Living and Working Conditions reveals
important differences between the EU15 countries and the
EU10 countries in terms of the quality and quantity of housing.
It is also worth noting that not all European citizens are guaran-
teed access to hot water and an indoor toilet, two of the criteria
for defining the minimum conditions for decent housing.

As housing is a cornerstone of the European social
2.1.8
model, the challenges posed to Europe by social and demo-
graphic change must be translated into housing policy. Popula-
tion ageing, the impoverishment of young adults who, because
of lack of resources, continue to live with their parents, access
to suitable housing for people with disabilities and access to
housing for migrants are all issues which need to be taken on
board. The EESC proposes, in line with the conclusions of the
Laeken European Council in December 2001, the adoption at
European level of:

— a set of common objectives on access to housing;

— minimum housing quality standards defining the concept of

decent housing.

2.1.9 Moreover, it is essential to promote housing mobility
so as to ensure labour mobility. Many people are ‘captives’ of
their homes, whether social or owner-occupied housing, because
the cost of borrowing.
of
Increased residential mobility is a prerequisite for greater labour
market flexibility.

lack of supply,

tax reasons or

2.2 Housing and territorial cohesion

The residential environment has always played a struc-
2.2.1
turing role in our societies;
the public areas that provide
meeting places are linked with zones of individual or collective
housing. Town planning and the creation of pleasant districts to
live in where the home is a fundamental component are prere-
quisites for social and territorial cohesion.

2.2.2
Although housing and housing policies differ in each
Member State, the European Union as a whole is characterised
by very high urban density. European towns and cities are typi-
cally compact but what gives them an even more distinctive
stamp is the presence of medium-sized buildings, and it is dwell-
ings which shape the urban landscape.

2.2.3
Therefore housing is an important element of urban,
economic and social policies in all European countries and there
is a need for wider sharing of solutions, particularly in the light
of
the crises which have afflicted disadvantaged districts in
several Member States.

2.2.4
The objectives of European regional policy are to
enhance territorial, social and economic cohesion by promoting
economic development in the most disadvantaged regions and,
since 2005, by focusing on the priority objectives of growth
and employment as part of the revised Lisbon agenda.

2.1.10
In view of its implications for community life and the
urban economy, housing can no longer be the subject of partial
strategies or measures. Whilst recognising the principle of subsi-
diarity, the EESC suggests that housing must be considered as a
key political issue with implications for people's everyday life
and as a means of bringing citizens closer to the European
project, which seems to be becoming more and more elusive by
the day.

2.2.5
In order to ensure the competitiveness of all regions
and foster job mobility, it is essential that housing supply be
diversified, not only in terms of type of tenure but also the mix
of neighbourhoods (type of housing and economic activities) or
the social mix, which underpins social cohesion. The ghettoisa-
tion of some urban districts makes economic activity very diffi-
cult.

The contribution of housing policy to the achieve-
2.1.11
ment of the Lisbon objectives, particularly as a driving force of
economic growth, should be better identified. The EESC would
stress that the impact of housing policy on labour mobility
makes it a complement to European policies implemented
as part of the growth and employment strategy, whilst also
helping to boost territorial cohesion. This is particularly impor-
tant in the newer Member States, via the provision of financing
for urban and rural
infrastructure networks, and appropriate
energy policies.

(1) First European Quality of Life Survey: social dimensions of housing, Dublin,

2006, ISBN 92-897-0935-9.

2.2.6
The location of affordable housing is the corollary of
the preceding point. In tandem with the right to housing, the
local authority must ensure that quality housing commensurate
with household resources is made available throughout the area
for which it is responsible.

2.2.7
The development of residential areas has a strong
impact on rural areas and if there is to be sustainable develop-
ment it is essential to give greater consideration to the interac-
tion between rural and urban areas insofar as concerns housing
policy.

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2.3 Housing, economic growth, mobility and employment

2.3.1
In some European countries, particularly those which
received financing from the Cohesion Funds during the previous
funding period, the rate of economic growth is closely linked to
the level of activity in the housing sector. This does not,
however, mean that people have easy access to affordable
housing. Ireland's 2006 National Reform Programme, drawn up
under the relaunched Lisbon Strategy, stresses the poor sustain-
ability of growth due to the lack of secure, affordable housing.
For example, in its 2006 National Reform Plan, Portugal points
out the need to give more support to the construction sector
and local authorities in order to foster sustainable growth in the
housing sector.

2.3.2
The ready availability of housing for all employees is a
sine qua non for the development of a dynamic employment
area, and lack of housing is a factor holding back growth in
many employment areas in Europe. Thus housing may be a
factor behind the rigidity of local labour markets and reduced
labour mobility.

2.3.2.1
France has an interesting scheme whereby employers
contribute the equivalent of 0.45 % of the total wage bill to
housing policy, thus aiding efforts to develop housing solutions
for employees. Similarly,
run specific
schemes for young people and vulnerable households (guarantee
deposits).

the social partners

2.3.3
It is a particularly pressing need for regions receiving
growing numbers of migrants who encounter difficulties in
finding housing in a tight market and who come up against
discriminatory practices conducive to community segregation.

2.3.4
Housing is one of the main sources of employment in
the Europe. There are numerous areas where the employment
potential has not yet been developed, particularly in the fields of
sustainable housing technologies and ecological homes, which
are set to expand considerably in the future. Moreover, construc-
tion is one of the sectors facing a serious shortage of skilled
labour.

2.4
In addition to being a source of jobs, household and
community services related to housing help to meet the chal-
lenges of demographic change, which inevitably have an impact
on employment at regional level. For example, intergenerational
homes, which are the subject of a targeted policy in Germany,
are a response to the need for diversity and offer an effective
way of combating the exclusion of elderly or other people living
alone. Given the background of an ageing population across
Europe, the exchange of good practice should be supported.

the question of

The EESC feels that

2.4.1
to
housing should not be considered solely from the standpoint of
combating exclusion but also from the viewpoint of population
ageing, migratory flows and new forms of poverty, and taking
into account the Lisbon Strategy, which seeks to breathe new
life into the European economy through greater labour market
mobility.

the right

remain illusory as

long as
2.4.2 Worker mobility will
nothing is done to strengthen fundamental
rights,
including the right to housing assistance. It is worth noting the
impoverishment of residents in social housing which was origin-
ally built to house persons in paid employment. The latter no
longer have priority access to social housing and experience
considerable difficulty in finding decent housing in areas where
there is pressure on the housing market.

social

Over the past decade, housing prices have been rising
2.4.3
constantly in nearly all EU countries. This has reduced the capa-
city of households to consume other goods, which will act as a
brake on sustainable growth in the long term. In addition, low
interest rates have led to over-investment
in the residential
sector, thereby putting pressure on financial resources allocated
to housing (cf. the Swedish National Reform Programme). The
social housing sector represents an instrument for regulating
housing prices (through rents) and the sustainability of
the
sector.

2.3.5
Household and community services, and in particular
personal care, are a very important source of employment and
are often organised and provided in conjunction with housing-
related services. Thus social housing providers,
in partnership
with social service organisations, provide not only homecare
services for the elderly and people with disabilities but also a
range of integrated health, education or childminding services,
as, for example, in ‘intergenerational’ homes. Support for com-
munity-based initiatives can help to sustain social and cultural
dynamism in neighbourhoods in crisis.

2.4.4
The EESC would further note that when it comes to
the implementation of social housing policy, the conditions on
intervention by public authorities in Member States and by
housing sector players are increasingly governed by Community
law. It is essential that competition and internal market policies
do not pose obstacles to housing policy aimed at guaranteeing
access to decent and affordable housing for all, given the posi-
tive contribution which housing policy makes to economic
growth and employment in Europe. The objectives have evolved
over time and social
landlords are now required to develop
social services to deal with the lack of an integration policy,
particularly for migrants.

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2.5 Responding to the challenge of reducing energy consumption

support which is less tailored to needs than that available for
the private sector.

2.5.1
The contribution which housing can make to reducing
energy consumption is vital, and given the level of energy prices
this is an area of activity which will become increasingly attrac-
tive for regions.

2.5.2
The largest potential for energy savings lies in the resi-
dential (households) sector where the potential is estimated to
be 27 % of the energy used, as noted by the European Commis-
sion in its Action Plan for Energy Efficiency.

2.5.3 More and more households in Europe are living in
poverty because of high home energy bills (fuel poverty).

2.5.4
The potential for reducing consumption will be even
greater if appropriate incentive measures are taken at European
level.

In this context,

2.5.5
the
approach adopted by the European Commission in its Action
Plan for Energy Efficiency focuses mainly on new construction
and proposes to extend the scope of standards in this field.

is surprising to note that

it

2.5.8.2
Energy is only one aspect of the problems associated
with sustainable development: water, waste management, access
for people with disabilities, safety, air quality and health at
home. Housing can make a crucial contribution to sustainable
development, but this presupposes that appropriate instruments
are available, particularly as regards the existing housing stock.

2.6 European instruments for improving the contribution of housing

to regional policies

2.6.1
The EESC supported extending eligibility for EDRF
in EU12 countries and to
financing to housing projects
measures related to sustainable urban development and energy
efficiency in EU15 countries
integrated
approaches
the development of disadvantaged urban
districts. Given the importance of the housing dimension, there
is a need to encourage and assist Member States and regions in
planning the restructuring of urban districts and improving
housing within the framework of the Structural Funds.

and as part of

for

This approach is too narrow since it does not take into
2.5.6
the necessity to change our lifestyles as part of a
account
broader
sustainability framework that encompasses various
aspects of individual behaviour (not only the utopian dream of
everyone having their own house but also day-to-day environ-
mental behaviour). The Commission's approach essentially
amounts to raising production costs, which are already too high
for average and disadvantaged households, without doing
anything to improve the existing building stock or change atti-
tudes, even though numerous studies attest to the importance
of such measures.

2.5.7
There is a wealth of evidence that European regional
policies make an important contribution to improving cohesion
and living conditions. Nonetheless, a greater emphasis on
housing in these policies could help to generate positive syner-
gies.

In fact, it is difficult to implement integrated strategies
2.6.2
for
the development of urban neighbourhoods without a
housing strand. Here the approach adopted in the European
Strategy for Social Inclusion, which included the objective of
access to decent, affordable housing as a condition for successful
social
today. The EESC
believes that all of the European instruments should be used to
promote better social integration of all groups.

integration, remains equally relevant

To this end, the European Social Fund must do more
2.6.3
to support social
inclusion measures which go beyond mere
employment market inclusion, since it has been observed that
the housing market and the employment market are intrinsically
linked. Moreover, immigration policies, which today are set at
European level, cannot overlook the role which housing can
make in efforts to prevent spatial segregation. The guidelines
which the European Commission is to publish on the integra-
tion of immigrants through housing must mark the first step in
this process, which must also involve better support for projects
with a housing dimension in the PROGRESS (2) programme.

2.5.8
Energy saving policy focuses on new housing, either
ignoring old properties or simply applying the new regulations
as such to them. Not only should the existing housing stock be
taken into consideration, but approaches should be adapted to
the specific characteristics of old properties and the particularly
high cost of complying with standards.

2.5.8.1
Public assistance must take into account the specific
features of social housing: tenants' poor financial position; fiscal

2.6.4
It is important to note that improving energy efficiency
in buildings is not only a priority for the EU12 countries but
for the EU as a whole. In all Member States energy efficiency
measures are eligible for Structural Funds financing, in the same
way as are measures for improving public areas, the use and
promotion of renewable energies and social inclusion measures.

(2) The aim of the PROGRESS programme is to provide financial support
for the European Union's objectives in the field of employment and
social affairs. It thus contributes to the achievement of the Lisbon
Strategy objectives.

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As regards technological and social

2.6.7
the
assistance provided under the 7th Framework Programme for
Research and Development will make it possible to identify not
for reducing energy consumption in the
only the potential
housing sector but also for sustainable urban development.

innovation,

2.6.8
European standardisation is highly pertinent to housing
and related services. However, this is an area where technical or
urban planning choices intersect with the choices of society, and
it is not acceptable that standards be laid down for the public at
large by working parties without a guarantee that the standardi-
sation process is subject to political control. The example of the
CEN standard on ‘prevention of crime by urban planning and
building design’, which was adopted without any real political
consideration of the urban model resulting from the application
of a risk-analysis approach, calls for a rethink of the standardisa-
tion process in this sector.

2.6.9
Finally, the Commission has drawn up a strategy for
sustainable urban development which should encourage towns
and cities to consider their development in terms of, inter alia,
transport policy. However, this strategy is only indicative and
there is a danger that its full potential will not be deployed if it
does not touch upon the social dimension of sustainable urban
development.

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS

2.6.5
The EESC welcomed the initiative by the European
Commission and the European Investment Bank (EIB) to create
a new financial instrument, JESSICA (3), specifically to provide
for the development of disadvantaged urban areas,
support
including social housing in these areas. It is worth noting that
this instrument will be able to raise capital needed for the
renewal of
these areas by offering loans and guarantees to
players involved in urban regeneration and social housing. This
instrument must be managed by players specialised in urban
renewal and housing, in close partnership with local authorities.
It must be able to exert a leverage effect in order to improve
living conditions for local residents. The JEREMIE (4) programme
also offers opportunities for players in the social housing field
who work to create pleasant neighbourhoods to live in for
everyone.

the

In the field of energy policies, the European Commis-
2.6.6
Intelligent Energy
sion proposed the launch under
programme of a pilot action for the social housing sector which
allowed the selection and promotion of model projects in the
area of energy efficiency and exchanges between players in the
sector. Given the European objectives to establish a common
energy policy and to improve coordination of measures taken
by Member States in this field, it is essential to ensure the conti-
nuation of
this instrument and to extend its scope beyond
support for pilot actions.

Brussels, 15 March 2007.

(3) JESSICA: Joint European Support for Sustainable Investment in City

Areas.

(4) JEREMIE: Joint Resources for Micro to Medium Enterprises.