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Territorial dimension in the future Cohesion Policy 

Future of Cohesion event 2026

CEMR and the German Association for Housing, Urban and Spatial Development (DV) hosted a discussion on the role of the territorial dimension in the future Cohesion Policy 

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4–6 minutes

On 12 October, during the European Week of Regions and Cities 2026, the Council of European Municipalities and Regions (CEMR) and the German Association for Housing, Urban and Spatial Development (DV), with the support of the German Federal Ministry for Housing, Urban Development and Building (BMWSB), brought together policymakers, practitioners and elected representatives to discuss how to strengthen the territorial dimension of the next EU Cohesion Policy. 

Future of Cohesion event - Speakers
Speakers of the event (from left to right): Claragh Mulhern, Tilman Buchholz, Raquel Garcia Hermida-van der Walle, Christoph Schnaudigel, Renata Calak, Arjen Gerritsen, Matija Kovač

With the negotiations on the 2028-2034 Multiannual Financial Framework (MFF) still ongoing, Member States are already advancing their National and Regional Partnership Plans (NRPPs). In this perspective, as no earmark has been foreseen by the European Commission to promote the use of Integrated Territorial approaches such as Integrated Territorial Investments (ITI), Community-Led Local Development (CLLD/LEADER) and other similar tools, CEMR and DV focused the main debate on this matter.  

“The Territorial Dimension and its place-based instruments can build on regional strengths through intermunicipal cooperation across the rural-urban continuum. They can make the benefits of European investment visible in everyday life, foster economic innovation and resilience, and bring Europe closer to its citizens.” Dr. Rene Peter Hohmann, Executive Director DV’s EU-Office.

An “operational” and not “symbolical” multilevel governance is needed  

Opening the event, CEMR President Christoph Schnaudigel, who is also President of the County of Karlsruhe, called the territorial dimension “not a technical addition to Cohesion Policy” but “a core condition for its success”. He warned that a simpler policy on paper could be less effective in practice if it ignores how differently climate transition, demographic change, affordable housing and access to services play out in a capital city, a small municipality, an island or a mountain area.  

He also stressed that partnership and multilevel governance “must be operational, not symbolic”, and that local and regional governments must be genuine partners in preparing, implementing and monitoring the NRPPs rather than only delivery contractors. 

The case of Celje (Slovenia): an example of how to include the territorial dimension 

Following those words, Matija Kovač, the Mayor of Celje (Slovenia), showed how the territorial dimension works in his town. “The ITI (Integrated Territorial Investment) in Celje is a good example of multi-level governance that is actually run by the cities and for the cities, and, of course, building on two programming periods’ experience since 2014, it has also built strong trust between the national organs, ministries, and the municipalities”, he said at the event.

“I think it is also a new way to include our knowledge and organisation in helping the national states to move on with the territorial decision.”


Predictability, flexibility, formal mechanisms for the NRPPs… different views in one high-level debate 

The high-level discussion, “Quo Vadis Cohesion Policy?”, brought together policy makers from the European, national and regional levels, as well as MEPs and local elected representatives 

According to Arjen Gerritsen, King’s Commissioner of Flevoland and CEMR spokesperson on the EU budget, the future funding architecture must deliver certainty, respect for territorial diversity, and support for integrated investments. He argued that Cohesion funding must remain identifiable and predictable within the NRPPs. 

“We need predictable regional resources, mandatory regional coverage (or chapters), stronger territorial tools, and the right enabling conditions. Together, these elements can help ensure that the Cohesion Policy continues to support economic, social and territorial cohesion across all European regions”, he added.    

Renata Calak, Director of the Strategy Department in the Ministry of Funds and Regional Policy in Poland, presented the first national perspective and stressed that “the new framework offers [Poland] both challenges and opportunities. ITIs are not foreseen in the new framework, but [Poland] will create [its] own national instrument to continue the work done on territorial approaches.” 

Future of Cohesion event - Speakers roundtable
Roundtable discussion, speakers (from left to right): Raquel Garcia Hermida-van der Walle, Arjen Gerritsen, Renata Calak, Claragh Mulhern, Anna Wagner

Following the Polish example, Claragh Mulhern, the Principal Adviser in the National Strategic Planning Department of Housing in Ireland, presented the Irish stance.  

“In Ireland, we have undertaken a spatial strategy involving a balanced territorial approach. We look at everything across the broad in a coherent strategy, cross-sectors providing an opportunity at a national level to look at what those interventions might be across the country.”

The discussion later turned into a brief debate between Commissioner Anna Wagner, Head of Unit, Regional and Urban Policy, and the Member of the European Parliament Raquel Garcia Hermida-van der Walle.  

While Wagner stressed that “the territorial dimension is anchored in the future framework through the European semester process and that for the first time there is a systematic and detailed territorial analysis, that will guide the national and regional partnership plans”, Garcia Hermida-van der Walle reiterated that “the partnership principle, multilevel governance, and the need of the local and regional governments in shared management need to be in the legal text, [as so far it is simply not in it]”. “It needs to be something that if member states don’t abide by the Commission will have to intervene”, she added. 

Future of Cohesion event - Last speaker
Future of Cohesion event, speaker: Tilman Buchholz

The event was wrapped up by Tilman Buchholz of the BMWSB, who reflected on a shared ambition to build a European coalition for balanced, integrated territorial approaches linking cities with their surrounding areas and complementing urban and rural development, as the MFF and NRPP negotiations move forward. 

CEMR will continue to work with the European institutions, Member States and partners to ensure that Europe’s future investment policy is built on the knowledge, legitimacy and capacity of its territories. 

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Reaction: Housing Simplification Act

Housing Simplification Act

CEMR calls for clearer, more coherent and flexible EU rules to help cities, towns and regions deliver affordable housing

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Europe urgently needs more affordable, sustainable, and inclusive housing. Yet cities, towns and regions working to deliver new homes increasingly face overlapping rules, lengthy procedures, legal uncertainty and limited investment capacity.

The Council of European Municipalities and Regions (CEMR) provided feedback on existing EU law impacting housing policies, especially at local level. In its response to the European Commission’s call for evidence on housing simplification, CEMR sets out how the European Union can remove unnecessary barriers while protecting essential social, environmental and democratic objectives.

Local and regional governments play a decisive role in housing through spatial planning, permitting, local services, infrastructure, and territorial development. They must therefore be fully involved in the design, implementation, and evaluation of any future European housing simplification measures. EU action should support locally adapted solutions, respect subsidiarity and strengthen the capacity of towns, cities and regions to act, not replace local decision-making with new layers of European requirements.

Simplification, not deregulation

Many EU rules affecting housing pursue legitimate public-interest objectives. Problems arise when requirements from different policy areas overlap, follow incompatible timelines, or impose disproportionate administrative burdens.

Housing projects can be affected simultaneously by procurement, state aid, fiscal, energy, environmental, and construction rules. Their combined effect can increase costs, delay investment, and require local governments to seek expensive external legal or technical expertise.

CEMR is therefore calling for a more coherent regulatory framework, with better-aligned definitions, datasets, deadlines, and digital systems. Simplification should focus on removing duplication and resolving conflicts between rules, while maintaining environmental protection, building quality, social safeguards, and meaningful public participation.

Unlock local investment in affordable housing

Towns, cities and regions cannot respond to housing shortages if public investment continues to be constrained by fiscal and state aid rules that do not adequately recognise the long-term value of affordable housing.

CEMR calls for affordable and energy-efficient housing expenditure to be treated as long-term public investment rather than ordinary current spending. The state aid framework should also provide greater legal certainty and flexibility for municipal and public-interest housing projects.

In particular, procedures related to entrustment, overcompensation controls, and earmarking obligations should be made clearer and more proportionate. Local governments, including smaller towns, should be able to implement housing measures without routinely depending on costly external expertise.

Make public procurement faster and more proportionate

Public procurement rules are another significant source of delay and administrative cost. As construction prices rise, more housing projects fall within complex EU-wide procurement procedures, even where there is little realistic cross-border interest.

CEMR proposes higher procurement thresholds that better reflect current construction and service costs. Its response also calls for greater flexibility to negotiate directly with a contractor following an unsuccessful procedure and to modify contracts when circumstances change after an award.

A simpler and more flexible framework would reduce delays, lower compliance costs, and help local governments bring affordable housing projects forward more quickly.

Align energy, environmental and housing objectives

EU energy rules should better enable local energy sharing, the use of nearby renewable energy and residual heat, and more flexible allocation of grid capacity for projects serving a clear public interest.

Closely connected legislation, including rules on energy efficiency, renewable energy and building performance, should operate as a coherent whole. Rather than prescribing detailed administrative procedures, the EU should promote open standards, interoperable data, and digital permitting systems that can be adapted to national and local administrative structures.

Greater legal certainty is also needed in applying the Birds and Habitats Directives and the Nature Restoration Regulation. CEMR calls for clearer assessment of thresholds, proportionate procedures for low-risk projects, and more flexible approaches to environmental compensation. These changes should improve planning certainty without weakening biodiversity objectives.

Build the capacity to deliver and renovate

Regulatory reform alone will not solve Europe’s housing shortage. Higher productivity in construction and renovation is equally important.

CEMR calls for investment in skills, training, innovation and local administrative capacity, particularly in small and medium-sized municipalities. Better labour mobility and recognition of qualifications could help address workforce shortages, while greater harmonisation of construction standards could reduce fragmentation and support innovative, circular and climate-resilient building methods.

Europe must also look beyond new construction. Renovation, retrofitting and the adaptive reuse of vacant buildings can increase supply, revitalise neighbourhoods and reduce environmental impacts. Making these projects easier to finance, permit and implement should be a core part of the simplification agenda.

Put local and regional governments at the centre

Housing pressures differ sharply from one territory to another. They may be driven by tourism, demographic change, land scarcity, infrastructure gaps, construction costs, depopulation, or shortages of affordable and social housing. Aligned with CEMR’s reaction to the Affordable Housing Act, the definition and related rules for areas under housing stress should be revised.

There can therefore be no single regulatory shortcut that works everywhere. The EU should provide enabling conditions through investment, legal clarity, interoperable systems and smart simplification, while leaving local and regional governments the flexibility to develop solutions suited to their communities.

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Meet Ellen van Selm (Purmerend)

Meet the Local Hero: Ellen van Selm, merging the best of the local and the European politics

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In this edition of Local Heroes, we speak to Ellen van Selm, Mayor of Purmerend (The Netherlands), about the city’s challenges, her goals and achievements as a mayor, as well as what connects her town to Brussels.

A city shaped by water and growth

Purmerend is a town of 100,000 inhabitants just north of Amsterdam, part of the city’s wider metropolitan area. Its roots, however, lie in a very different landscape.

“Purmerend used to be a small market town in a very watery area,” van Selm explains. “Farmers from the surrounding wetlands came here to trade their agricultural products, livestock and fish.” When the lakes and wetlands around it were reclaimed, the town became an important food-producing region for Amsterdam and later, thanks to its proximity to the capital, an increasingly attractive place to live.

That proximity still shapes daily life. A steady flow of commuters travels between Purmerend and Amsterdam, and the town has grown rapidly since the 1970s. For van Selm, that growth is also the municipality’s biggest challenge today. “We also want to remain a town where people know each other, where there is room for nature, culture and community, and where people feel at home,” she says. “Our biggest challenge is not simply to build more houses, but to grow in a way that strengthens the quality of life and preserves the identity of Purmerend and [the nearby municipality], Beemster.”

In the Netherlands, mayors are not elected

Being a mayor in the Netherlands, van Selm points out, differs from the role in many other European countries. Unlike many of her European colleagues, she was not elected by residents but appointed by the Crown. Dutch municipalities are governed jointly by the mayor, the Aldermen, who serve in the Netherlands as the executive and administrative officers of a local municipality, and an elected city council, each with distinct responsibilities.

“I don’t have my own election programme that I want to implement,” she says. “I see my role as bringing people together, creating connections, and making sure that the interests of our residents are heard in our democratic process.”

Three initiatives stand out for van Selm. The first is Purmerend’s regional deal, a genuine partnership between the municipality, the national government in The Hague, and local NGOs, all investing together in the region’s future.

The second is the town’s children’s mayor programme. “It gives children in Purmerend a real voice and teaches them that they can make a difference,” she says. “My aim is to make sure that their voices are heard as well.”

The third is safety, a legally assigned part of her role as mayor. Purmerend has worked to make neighbourhoods safer following incidents involving explosions, and to make public spaces feel safer for women.

From Purmerend to Brussels, and back

Van Selm’s local role and her European work, as a member of the Dutch delegation to the European Committee of the Regions and of its COTER Commission are, in her words, “two sides of the same coin.”

“What I experience locally informs my work in Brussels, and what I learn in Brussels comes back to my municipality.” Through COTER, she is closely involved in discussions on the future of the EU budget and cohesion policy, topics that can sound abstract, but which she sees translated directly into local impact. In Purmerend, European Social Fund support has helped sustain the municipality’s labour market programme, run through a local social development organisation, giving it continuity from year to year and room to innovate.

That two-way exchange extends beyond the Committee of the Regions. Van Selm also takes part in European city networks such as the New Towns Alliance, exchanging experience with towns facing similar pressures around housing, the energy transition, the labour market and social inclusion. As Purmerend is part of Association of Netherlands Municipalities (VNG), Van Selm is also CEMR Spokesperson on Housing.

“What works in one city can inspire solutions in another,” she says. “Policy becomes meaningful when it reaches people and communities locally and local experiences become even more valuable when we share them with other cities and use them to shape European policy.”

Staying close, looking outward

Asked what matters most for a mayor today, van Selm points to balance: staying close to residents while keeping a broader view. “You need to stay close to your residents, listen to them, understand what makes your municipality unique, and protect that sense of identity. But at the same time, don’t only look inward, ask what your municipality can contribute to the country, to Europe, and to the other regions and networks you work in.”

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Pumerend is a member of the CEMR National Association of Netherlands Municipalities (VNG).

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Reaction: EU Affordable Housing Act 

EU Affordable Housing Act

Local flexibility must remain at the heart of EU Housing

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The European Commission has shared its proposal for an Affordable Housing Act, introducing a common EU framework for assessing and justifying housing-related measures at the local level. The proposal aims to provide greater legal certainty for public authorities while explicitly recognising that housing policy remains primarily a national, regional and local competence.  

The legislative proposal is accompanied by a Recommendation on Housing Affordability and Supply in Areas under Housing Stress, introducing the concept of affordable housing areas and proposing measures to address housing stress. 

CEMR welcomes the publications as important milestones in the growing recognition of housing as a European challenge that requires action at all levels of governance. Local and regional governments are on the frontline of addressing housing affordability and availability, and CEMR has consistently advocated for a framework that strengthens their ability to act while respecting territorial diversity.  

However, despite CEMR repetitive efforts indicating the importance of flexibility and strengthened capacity for local and regional governments, the Commission’s main solution to address housing affordability is a standardised definition for housing stress at EU level.  

While CEMR positively takes note of repeated recognition of regional and local competences in the proposal, the reliance on “competent authorities” under Article 4 in the Housing Act raises concerns for local and regional governments. That is because, according to this terminology, it is left to the discretionary interpretation of each Member State. The use of the terminology continues throughout the Recommendation, suggesting significant decision-making power and responsibility at the level of a “competent authority”.  

A common definition of housing stress 

Throughout its advocacy, CEMR has pushed to keep the Affordable Housing Act flexible enough to reflect Europe’s varied housing realities. In its recommendations to the Commission, CEMR argued for a place-based approach that preserves local assessment mechanisms rather than imposing a single, uniform definition of housing stress. 

Yet despite leaving room for “competent authorities” to decide what action is necessary, Article 6 in the Act still sets out a common EU methodology for determining when an area qualifies as being under housing stress. 

Under the proposed rules, an area can only be classified as experiencing housing stress if three conditions are met: the price-to-income ratio stands at 8 or higher, that ratio has risen over the past decade, and the pressure shows no sign of easing over the next three years. 

CEMR has repeatedly pointed out that this fairly narrow lens risks missing the bigger picture. Housing stress takes many forms across Europe and can’t always be reduced to a single affordability indicator. Pressures may come from tourism, supply shortages, demographic shifts, land constraints, planning and permitting bottlenecks, infrastructure gaps, or a simple shortfall in affordable and social housing. 

This nuance does appear in the proposal’s explanatory sections, in the Recommendation, and in comments made at the press conference. But it largely fades from view in the operative provisions themselves, where housing stress is defined almost exclusively through price and income indicators.  

What’s more, experience suggests local authorities often have legitimate public-interest reasons to act that go beyond affordability alone: environmental nuisance, for instance and the proposal makes no room for these.

Ellen van Selm (CEMR spokesperson on Housing and Mayor of Purmerend (The Netherlands)):

’We are pleased to see the efforts of the EC to support solving the housing crisis. However, we encourage the Commission to create a more beneficial framework for local and regional authorities. By introducing a rigid definition of housing stress, increasing burdens to deliver proof while data is not always available, and focusing repeatedly on short-term rentals, the Affordable Housing Act limits the place-based and innovative solutions that local and regional governments need. In practice, this makes it more difficult for towns, cities and regions to act proactively when housing pressures emerge.’’ 

A range of measures available to authorities 

The proposal largely reflects what CEMR has been asking for: giving local and regional governments the flexibility to deploy different interventions depending on local circumstances. Under the conditions set out in the Regulation, “competent authorities” would be able to restrict short-term rentals in non-primary residences and regulate the acquisition or use of land and residential property for purposes other than primary living. The proposal also allows for territorial targeting and differentiated approaches. 

Still, CEMR has consistently stressed that local authorities need to be able to act before housing pressures spiral out of control and, on this front, concerns remain. Article 9 requires authorities to prove that an activity has had an adverse effect on housing affordability or availability for at least three years before any restrictive measures can be introduced. For many local governments, this could place an additional burden on authorities and delay action to address housing pressures early enough.  

On streamlining, the Recommendation proposes creating Housing Acceleration Areas, to be identified by the “competent authority.” These zones would benefit from a unified permitting timeframe and, where relevant, tacit approval. But CEMR warns this approach doesn’t adequately account for local realities, which are shaped by complex legislative frameworks and need to be assessed case by case.  

The legislative proposal also seeks to clarify how housing measures interact with existing Internal Market legislation, including the Services Directive, with the aim of giving public authorities greater legal certainty and reducing the risk of litigation. Even so, CEMR warns that the Affordable Housing Act could end up doing the opposite for municipalities, adding extra difficulty and legal uncertainty around the burden of proof required across the different frameworks. 

Looking ahead 

The Affordable Housing Act represents a significant step in building a clearer EU framework for housing-related measures and includes several elements long advocated by local and regional governments. The Commission Recommendation indicates recognition of the importance of subsidiarity and rightfully promotes a holistic understanding of the challenges that are faced at the local level.  

However, important questions remain regarding the proposed definition of housing stress, the allocated responsibility to ‘competent authority’, the practical feasibility of making the right assessments, and the reduced flexibility for authorities to address broader forms of housing pressure that are not fully reflected in affordability indicators alone.  

Beyond the Affordable Housing Act and its action on securing the legality of local and regional housing policies, CEMR highlights that addressing the housing crisis will also require massive investments capacities. In this respect, discussions on the future of the Multiannual Financial Framework and Cohesion Policy should reflect the political attention given to housing and enable adequate support for local action to address the housing crisis. 

CEMR will continue to engage with the European institutions throughout the legislative process to ensure that the final legislation provides local and regional governments with the flexibility, legal certainty and practical tools needed to respond effectively to Europe’s diverse housing challenges.

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Europe’s housing agenda must start locally  

Cities, towns and regions call for investment, smart simplification and local autonomy as Europe steps up its response to the housing crisis

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Europe’s housing initiatives will only succeed if they reflect the realities faced by cities, towns, and regions. This was the central message from the latest meeting on 3 September of the CEMR Housing Task Force, which brought together participants from 12 national associations of local and regional governments, alongside representatives of the Irish government and the European Commission. 

During the meeting, CEMR Task Force members exchanged experiences from across Europe and discussed two major initiatives expected to shape the EU housing agenda: the forthcoming Affordable Housing Act and the Housing Simplification Package. The discussion enabled CEMR members to provide early feedback directly to EU policymakers and help prepare CEMR’s contribution to the European Commission’s ongoing call for evidence on housing simplification.

Housing: high on the European agenda 

The meeting opened with an exchange on the housing priorities of the Irish Presidency of the EU. Ireland plans to build on the political momentum generated by previous presidencies, with housing supply, affordability and homelessness among the priorities under discussion. Participants also heard about plans for stronger European cooperation, including a pan-European housing investment platform and the recently established European Housing Alliance, which aims to promote networking and the exchange of good practices. 

CEMR members stressed that local and regional governments must have a meaningful place in this emerging European architecture, including in ministerial discussions and stakeholder events. They also expressed strong interest in financial solutions capable of supporting long-term public and affordable housing investment, such as revolving funds.

Simplify delivery is not deregulation 

The European Commission’s forthcoming Housing Simplification Package, expected in the second quarter of 2027, offers an opportunity to remove unnecessary costs, delays, and inconsistencies affecting housing delivery. EU rules on procurement, State aid, environmental assessment, energy performance, taxation, and construction standards can all influence what local and regional governments are able to deliver. 

CEMR Task Force members nevertheless cautioned that simplification must not become deregulation. Environmental protection, building quality, and citizen participation remain essential. The objective should be to resolve conflicts and duplication between policies while preserving their public interest goals. 

Above all, participants called for respect for municipal autonomy over zoning, local taxation, permitting, and development plans. Definitions of affordability, housing stress, and priority groups must reflect local conditions rather than rely exclusively on uniform indicators or datasets that may not capture realities on the ground. 

Direct dialogue on the Affordable Housing Act 

In an exchange with Matthew Baldwin, Deputy Director-General at the European Commission and Head of its Housing Task Force, members discussed how the forthcoming Affordable Housing Act could provide greater legal clarity for public authorities in areas experiencing severe housing pressure. Members welcomed efforts to reduce legal uncertainty but stressed that Member States must allow the competent local and regional authorities to play a decisive role in assessing housing pressure and choosing the appropriate response. 

Short-term rentals are not the sole cause of Europe’s housing crisis. Nevertheless, in some territories, the combined effects of tourism, vacant homes, and insufficient supply can intensify local pressures. Cities need clear and workable legal tools to act where necessary, without new administrative burdens or EU interference in local decisions.

Different housing markets, shared barriers 

The meeting also featured a national roundtable, which showed the diversity of housing markets and challenges across Europe. Members reported ambitious construction targets, rising development costs, high mortgage rates, shortages of public funding, and difficulties financing renovation in lower-value areas. Severe pressure on municipal budgets is also limiting the ability of local governments to build and maintain public and social housing. 

Despite these differences, common priorities emerged: stable and accessible finance, stronger construction capacity, support for renovation, and policy frameworks that allow local authorities to respond to their own housing markets. 

Participants also highlighted the social dimensions of the crisis. Housing policies should better address homelessness and the needs of people at particular risk, including women experiencing domestic violence. Tackling skills shortages in construction, while opening the sector to a more diverse workforce, was identified as another important area for future work.

Turning local expertise into European influence 

The meeting’s conclusions will feed directly into CEMR’s response to the European Commission’s call for evidence on the Housing Simplification Package. By bringing together evidence from its members and maintaining a direct dialogue with the European Commission and Council presidencies, CEMR is ensuring that local and regional experience informs European decisions from their earliest stages. 

As the EU develops its housing agenda, CEMR will continue to advocate for a simple principle: local and regional governments must be trusted, financed, and fully involved if Europe wants to turn housing ambitions into affordable, sustainable, and inclusive homes. 

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“Right to Stay” strategy

Right to Stay strategy news

CEMR calls for a place-based “Right to Stay” strategy

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2–3 minutes

In its contribution to the European Commission’s call for evidence on the upcoming “Right to Stay” strategy, the Council of European Municipalities and Regions (CEMR) calls for a politically ambitious, place-based framework that puts local and regional governments at the centre of Europe’s response to territorial, social, economic and demographic imbalances.

For CEMR, the right to stay means that people must be able to live, work and thrive in the place of their choice: whether in a city, a town or a rural area, without being forced away by lack of public services, economic opportunity, poor connectivity or rising living costs.

This is not just a matter of territorial cohesion. It is also a question of fairness, democracy and trust in the European project. If the EU wants to respond to growing territorial inequalities, it must start by investing in the places people call home and by recognising the governments closest to citizens as strategic partners.

In its response, CEMR underlines that there can be no right to stay without access to services, housing and opportunity. Across Europe, too many territories still face shortages in healthcare, education, mobility, childcare, energy and digital infrastructure. At the same time, rising housing costs are pushing people out of cities, while many rural and shrinking areas continue to suffer from depopulation and underinvestment.

CEMR therefore calls on the EU to strengthen support for services of general interest, affordable housing and integrated territorial development. It also stresses the need to create enabling conditions for local economic opportunities in every territory, including through better transport and digital connectivity, support for entrepreneurship, and action to tackle labour shortages in key local public services.

CEMR also highlights the growing importance of climate resilience, sustainable mobility and local energy production for territorial attractiveness and energy security. Investments in adaptation, renewable energy and accessible transport must therefore be part of any credible Right to Stay agenda.

For CEMR, Cohesion Policy must be the main delivery tool of the future strategy. In the next EU budget, the Right to Stay should be recognised as a clear strategic objective, backed by strong funding, integrated territorial instruments and genuine partnership with local and regional governments in the design of national and regional plans.

CEMR also calls for the Right to Stay to be embedded in EU governance, including through the European Semester and stronger territorial impact assessments. Europe cannot continue to shape policies for territories without systematically involving the authorities responsible for delivering them.

The message is clear: the right to stay will only be real if the EU gives territories the means to remain attractive, affordable, connected and resilient. That requires political ambition, long-term investment and a genuine multilevel partnership with local and regional governments.

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CEMR Housing Task Force

EU housing news 2026

Affordable, sustainable, livable: what local governments need from the EU on housing 


The housing crisis has become one of the defining societal challenges of the 21st century, affecting communities across Europe: from major cities to rural areas, and reshaping social, economic, and demographic realities. Rising housing costs, homelessness, and chronic underinvestment are undermining equality, cohesion, and sustainability. Addressing this emergency requires integrated, place-based solutions that link housing with services, mobility, jobs, and quality of life. As frontline actors, local and regional governments must be recognised as key partners in Europe’s response, working with national and EU institutions to deliver affordable, sustainable, and inclusive homes for all.  
 
Europe’s housing crisis is felt most sharply where people live, work and study. On 9 April 2026, CEMR’s Housing Task Force brought together local and regional perspectives on how to measure affordability and how to respond to short‑term rentals and accelerate housing delivery.  

The discussion comes at a pivotal moment as the European Commission’s European Affordable Housing Plan has placed housing firmly on the EU agenda, and preparations are underway for an Affordable Housing Act aimed at supporting public authorities in addressing pressure in “areas under housing stress”, including through measures linked to short‑term rentals. With the European Parliament also intensifying its work on the housing crisis, the political momentum is clearly rising.  

Affordability beyond a single number 

A key takeaway following an exchange with Sandra Di Biaggio, Research and Policy Manager at ESPON for a presentation on the project Housing4All, was that affordability is multidimensional. It cannot be reduced to prices alone: income and residual income matter, but so do energy bills, mobility costs, access to services and housing quality. Participants also stressed that data gaps, including limited harmonised income data at the local level, can make comparisons difficult, reinforcing the need for place‑based analysis.  

Tailor-made policy mixes 

The Task Force discussion underlined that no single instrument can fix affordability everywhere. Housing pressures vary widely from urbanisation and tourism to student demand and financialisation, alongside supply constraints such as rising costs and construction capacity. This calls for policy mixes adapted to local realities, where EU action adds value by enabling conditions (investment, legal clarity, better data, smart simplification) rather than prescribing uniform solutions.  

Short‑term rentals and local autonomy 

On short‑term rentals, participants highlighted the need for legal certainty for local governments when adopting policies on short-term rentals,  without undermining local competence. Overly rigid definitions in the norm risk limiting local capacity to act, especially if rules apply only within narrowly defined “stress areas”. At the same time, better enforcement of existing tools and clearer guidance on what is compatible with EU law could strengthen local action.  

Building faster and better. Finally, the Task Force discussed how industrialisation, standardisation and digitalisation in construction, alongside renovation, circularity and energy performance, could speed up delivery while supporting Europe’s climate objectives.  

CEMR will continue to bring local and regional perspectives into the EU debate as work progresses towards the Affordable Housing Act (expected for the end of 2026).  

Learn more about the CEMR position on Housing

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Housing policy paper

Housing policy paper - News 2026

A local housing plan to strengthen the role of cities, towns and regions in addressing Europe’s housing challenges


Europe’s housing crisis has reached unprecedented levels, with direct consequences for citizens living in towns, cities and regions across the continent. The European Commission’s EU Affordable Housing Plan is a meaningful step forward, but it will only deliver if the full potential of local and regional governments is unlocked.

CEMR’s new position paper, “A local plan for housing”, sets out proposals to the EU Affordable Housing Plan, arguing that Europe’s ambitions will only translate into real results if towns, cities and regions are fully empowered to act.

To make this happen, CEMR identifies four priorities that must be unlocked so local and regional governments can deliver on the ground:

1. Mobilise investment where it matters most

Inadequate and unpredictable funding is one of the main barriers to expanding affordable and sustainable housing for towns, cities, and regions. Local and regional governments need long‑term investment frameworks. CEMR calls for:

  • Simpler and wider access to EU and national funding, including cohesion policy and EU budget 2028-2034 instruments, so municipalities of all sizes can plan and deliver.
  • Reforms to fiscal rules and modernisation of State aid, treating affordable and energy‑efficient housing as long‑term investment rather than ordinary expenditure.
  • Support to strengthen construction capacity and innovation, from skills to circular, climate‑resilient building and renovation.

2. Enable faster and more coherent planning to accelerate delivery

Fragmented, complex procedures delay urgently needed homes across Member States. CEMR urges EU and national authorities to:

  • Streamline planning and environmental assessments, reducing duplication while upholding strong sustainability standards.
  • Enable place‑based approaches, giving towns, cities and regions the flexibility to access land, regenerate brownfields and plan integrated, inclusive neighbourhoods.
  • Advance the single market for construction, harmonising technical standards to reduce delays, boost innovation and lower costs.

3. Improve efficiency through digital permitting

Digital permitting can bring faster renovation and new construction, but many local and regional governments lack resources to implement it. CEMR calls for:

  • Dedicated funding, training and technical assistance are needed for interoperable local–national–EU permitting systems.
  • Clearer guidance for applicants and developers will improve submission quality.

4. Activate Europe’s full potential through a real multilevel partnership

The EU Affordable Housing Plan will only succeed through genuine cooperation across levels of government. CEMR asks for:

  • Structured multilevel governance, with local and regional governments fully involved in design, implementation and monitoring.
  • Stronger municipal autonomy and legal clarity, ensuring responsibilities are matched with financing.
  • Adequated resources for the European Housing Alliance with structured participation of local and regional governments, which also serves to cooperate beyond the EU to address shared housing challenges.

Europe’s housing challenge demands swift and coordinated action. The EU Affordable Housing Plan sets an important framework, but its success will depend on how well it empowers the governments closest to citizens. By unlocking investment, planning flexibility, digital efficiency and genuine multilevel governance, Europe can move from ambition to delivery.

CEMR’s “Local Plan for Housing” offers a clear pathway: start locally, invest wisely and collaborate across levels of government. Only by working through cities, towns and regions can Europe ensure that affordable, sustainable and inclusive homes become a reality for all.

For more information, contact:

TERRI report: survey to members

Local Alliance - News Section

CEMR launches new study on local governments’ role, responsibilities in housing governance


In 2026, CEMR will update its flagship study on governance trends, the Terri Report. The previous edition, published in 2021, focused on the role of local and regional governments in public health. The new edition will place housing policy under the spotlight — a policy field that clearly illustrates how responsibilities are shared across levels of government and how effective coordination shapes tangible outcomes and the well-being of citizens and local communities.

For many years, CEMR has monitored territorial and governance developments across its membership, analysing what institutional and territorial changes mean for democracy and the quality of public decision-making. As governance challenges grow more complex and increasingly differ between places, traditional top-down approaches are proving less effective. Strong coordination across national, regional and local levels is therefore more important than ever.

Alongside updating data on governance structures and administrative reforms, the study will use housing as a lens to examine how competences, financial resources and implementation capacities are distributed across levels of government — and what this implies for addressing territorial disparities and delivering place-based solutions.

To support this work, CEMR’s members will receive a detailed questionnaire in early March 2026, addressed to national associations and experts with practical knowledge of housing policy at municipal or regional level. The questionnaire is structured in two parts:
• Part I focuses on governance arrangements, competences and reforms.
• Part II examines housing policy as a case study of multilevel cooperation.

This is a substantial, expert-level exercise rather than a quick survey. The evidence gathered will form a key foundation for CEMR’s advocacy on effective multilevel governance and housing policy. Members will have approximately three weeks to respond.

The study is expected to be published in autumn 2026, and CEMR looks forward to your participation in this work. Your contribution will strengthen our collective evidence base and advocacy for better governance and stronger place-based policies across Europe.

For more information, please contact:

New task force on housing

ADD ME project

CEMR strengthens the voice of local and regional governments in Europe’s housing agenda 


With housing fast becoming one of Europe’s most pressing social and economic challenges, the Council of European Municipalities and Regions (CEMR) has launched a new Task Force on Housing to shape the local and regional contribution to the EU’s forthcoming European Affordable Housing Plan but also beyond the EU agenda, to foster exchanges within CEMR membership to consolidate the voice of local and regional governments on the housing crisis. The new task force is bringing together close to 30 housing experts from 11 European countries.  

What European solutions to local challenges?  

At its inaugural meeting on 3 October 2025, participants highlighted how the housing crisis takes different forms across Europe: from overheated urban markets and speculative investment in short-term rentals, to depopulation and poor housing quality in rural areas. Despite these diverse contexts, all agreed that housing is a human right and that local governments must have the means and autonomy to act. 

Members discussed how the EU can best support local and regional efforts through more accessible financing, simplified permitting, stronger subsidiarity, and fairer fiscal rules, without replacing or duplicating existing national and local initiatives As one participant put it, “We need to define what the EU can add to national and local support systems to housing and look where local expertise could lead.”  
 
The task force also exchanged with Matthew Baldwin, Deputy Director General at the European Commission Directorate General for Energy, responsible of the Commission’s own task force on housing. He presented the European Commission’s vision for the European Affordable Housing Plan, emphasising that affordability, sustainability, and decent living standards are now recognised as core EU priorities. He invited CEMR and its members to contribute to the public consultation. 

What are the priorities of local and regional governments on housing? 

From the first meeting of the CEMR housing task force, some common messages already emerged:  

  • A multi-level governance approach, respecting subsidiarity and proportionality in all EU housing and urban policies; 
  • Long-term, flexible, and accessible financing tailored to both urban and rural needs; 
  • Reformed fiscal rules to give municipalities more autonomy and capacity to invest; 
  • Simplified permitting and planning frameworks that reduce delays without compromising democratic accountability; 
  • And a holistic view linking housing to energy efficiency, mobility, and access to public services — ensuring that every home is part of a sustainable, inclusive community. 

In the discussion that followed, participants stressed that “housing cannot be solved through construction alone. It must be part of a wider territorial vision that connects affordable homes with climate neutrality, social inclusion, and quality of life.”  

CEMR will build on these messages to consolidate a European local and regional vision to address the housing crisis. By coordinating local and regional voices, CEMR aims to ensure that Europe’s response to the housing crisis fully recognises the essential role of municipalities and regions: those who plan, build and care for their inhabitants.