On Thursday, 5 June, the European Commission announced it was launching a call for evidence and a public consultation on how to facilitate public investment in the construction of affordable housing by revising the EU rules governing the management of services of general economic interest (SGEI).
Under the terms of the European Commission’s ‘SGEI Decision’ (2012/21) in late 2011 (see EUROPE 10520/8), Member States may grant undertakings financial compensation for managing SGEI in relation to social housing without prior approval from the EU institution for the public aid granted and without limits on compensation.
Yet, as affordable housing has not been defined in EU law, it is difficult for Member States to use the SGEI Decision. In addition, in cases where SGEI go beyond the scope of social housing, compensation under the decision currently cannot exceed €15 million per year for any one country. This situation is ill-suited to meet existing needs, according to the EU institution.
Beyond €15 million per year, affordable housing SGEI may be subsidised on a case-by-case basis, subject to the European Commission’s approval. To date, only Ireland, the Czech Republic, and Sweden have received a positive assessment of their national regimes in this area.
One of the proposals submitted for consultation thus consists of introducing, at the European level, a definition of affordable housing as part of a revision of the SGEI Decision. The European Commission has suggested the following definition: “Housing for households, who are not able, due to market outcomes and notably market failures, to access housing that meets minimum energy performance levels at affordable conditions.”
The deadline to participate in the call for evidence and the public consultation is set for this coming 31 July.
See the call for evidence: https://aeur.eu/f/h6q (Original version in French by Mathieu Bion)