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THOMAS Carol
In Governance, Governance, Housing, Housing, Impact community Cohesion, Impact community Cohesion, Impact community Society, Impact community Society, Latest, Local finances, Local finances, Publications

CEMR TERRI Report 2026

Terri Report 2026 - Housing

TERRI 2026 report looks at how Europe’s territorial governance is changing and why it matters

644 words
3–4 minutes
READ FULL REPORT HERE

The Council of European Municipalities and Regions (CEMR) has published the TERRI 2026 Report, its latest assessment of territorial governance and reform trends. Drawing on evidence from CEMR member associations, the report examines developments in territorial organisation, governance arrangements, local and regional responsibilities, inter-municipal cooperation, fiscal capacity and housing governance. The central finding of TERRI 2026 is that effective governance is no longer defined by how institutions are structured. This edition focused on housing challenges in Europe.

Governance change is happening in how systems work, not in their structures

Since the first TERRI report in 2021, the focus of reform has shifted away from redrawing boundaries and restructuring territories towards improving how governance works in practice. Across Europe, efforts are increasingly centred on strengthening administrative capacity, enhancing coordination between levels of government, and delivering better outcomes for citizens

Shared responsibilities and growing cooperation

The distribution of formal responsibilities has remained broadly stable across much of Europe, although respondents in several countries reported examples of recentralisation or growing national influence over local decision-making. Delivery, however, increasingly relies on shared arrangements between national, regional and local governments, so how responsibilities work in practice matters more than the centralised/decentralised divide.

Cooperation is now mainstream: more than four-fifths of responding countries reported inter-municipal or alternative arrangements, increasingly covering areas such as spatial planning, economic development, social services, investment coordination and resilience preparation.

Capacity and financing remain critical challenges

Respondents to CEMR’s survey repeatedly pointed to administrative expertise, workforce capability and organisational resources as key determining factors for implementation. Performance depends as much on delivery capability as on institutional design. Fiscal pressures remain a key challenge, with many respondents highlighting the difficulty of balancing growing responsibilities with adequate resources, investment needs, and predictable long-term funding.

[on page 46 in PDF]

Housing: a test case for territorial governance

Housing is putting governance systems across Europe to the test. Affordability pressures, housing shortages, ageing stock and sustainability requirements are testing the ability of governments at all levels to respond effectively. The report finds that no single governance model guarantees better outcomes; success depends on how governance arrangements, financing, local flexibility and implementation capacity work together.

 CEMR sets six policy messages

  1. Align responsibilities with resources. New or expanded responsibilities should come with sufficient, predictable funding: funding follows function.
  2. Put governance capacity at the centre of reform. Invest in skills, expertise, and institutional capability as a core part of reform.
  3. Promote multi-level governance based on partnership. Support European, national, regional and local governments in working together while respecting local autonomy, rather than pursuing centralisation or decentralisation for its own sake.
  4. Strengthen place-based approaches. Give local and regional governments the flexibility to adapt policies to local circumstances rather than imposing uniform solutions.
  5. Strengthen long-term capacity and fiscal sustainability. Support multi-annual financing, long-term investment planning, and greater fiscal predictability.
  6. Recognise housing as a strategic governance issue. Rather than promoting one model, strengthen the conditions for success: clear responsibilities, predictable financing, local flexibility, implementation capability and coordination across levels of government.

Towards better-functioning decentralisation

The report concludes that Europe does not need a single model of territorial governance. The challenge is not more or less decentralisation, but ensuring that arrangements support effective local self-government, policy delivery and democratic accountability. This also matters for the Sustainable Development Goals, many of which depend on local and regional governments turning objectives into results.

Successful policy outcomes depend on all tiers of government working together through governance arrangements that are capable, coordinated and responsive to territorial needs.

TERRI 2026 provides a timely snapshot of how these challenges are evolving across Europe, and CEMR will continue to work with its members and partners to ensure that local and regional perspectives help shape the governance solutions of tomorrow.

20261104 – 75th anniversary presentationDownload

For more information, contact:

GAUDRON Marine
In Housing, Housing, Impact community Cohesion, Impact community Cohesion, Latest, Publications

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

852 words
4–5 minutes
Read CEMR’s full response

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.

For more information, contact:

GAUDRON Marine
In Housing, Housing, Impact community Cohesion, Latest

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

791 words
3–5 minutes

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. 

For more information, contact:

BANOS DE GUISASOLA Eva
In Climate, Climate, Energy, Energy, Environment, Environment, Impact community Climate, Impact community Climate, Impact community Cohesion, Impact community Cohesion, Impact community Labour, Impact community Labour, Impact community Society, Impact community Society, Latest, PLATFORMA, PLATFORMA, Projects and Programmes, Projects and programmes, Publications, Water, Water

Localising the Sustainable Development Goals in Europe

Reference Framework for Sustainable Cities - image 1

European territories localise the SDGs: cities at the core of implementation

613 words
3–4 minutes
Read the full report

With less than four years remaining to achieve the 2030 Agenda, a new CEMR–PLATFORMA report highlights a clear message from local and regional governments across Europe: sustainable development will only succeed if cities, towns and regions are placed at the centre of decision-making, financing and implementation.

Published by the Council of European Municipalities and Regions (CEMR) and PLATFORMA at the occasion of the High-Level Political Forum on Sustainable Development (HLPF), the 2026 edition of the report European territories localise the SDGs: Cities at the core of the implementation examines how local and regional governments are contributing to the Sustainable Development Goals (SDGs) and what is needed to accelerate progress during the final stretch to 2030.

The study is based on a survey of 23 respondents from 17 countries, including associations of local and regional governments from 15 EU Member States and two non-EU countries.

Local action is essential for global goals

The report comes at a pivotal moment. As both the UN New Urban Agenda and the Urban Agenda for the EU reach their tenth anniversary, local and regional governments are reaffirming their indispensable role in translating global ambitions into concrete results on the ground.

From mobility and housing to climate resilience and social inclusion, towns, cities and regions are responsible for many of the policies that directly affect residents’ daily lives. According to the report, SDG implementation is not primarily a technical matter but a political one, requiring trust, resources and authority to be devolved to the territorial level.

The publication places particular emphasis on SDG 11 – Sustainable Cities and Communities, one of the goals under review at the 2026 HLPF. It argues that sustainable urban development cannot be achieved without strong local democracy, effective multi-level governance and meaningful involvement of subnational authorities in national and international decision-making processes.

Six recommendations to accelerate SDG implementation

Drawing on the experience of local and regional governments, the report puts forward six recommendations addressed to the United Nations, the European Union and national governments.

Among its key messages, the study calls for:

  • Reinforcing multi-level governance as a political priority for the 2026–2030 period.
  • Placing the subnational level at the centre of SDG implementation, including stronger participation of local and regional governments in global review processes and improved access to development finance.
  • Reaffirming the importance of the UN New Urban Agenda as the main global framework for sustainable urbanisation.
  • Ensuring that cities and towns remain central to Europe’s sustainable development agenda through stronger alignment between EU and UN urban policy frameworks.
  • Recognising the role of territories in the upcoming EU Multiannual Financial Framework 2028–2034, with more accessible and place-based funding for municipalities and regions.
  • Accelerating the localisation of the SDGs by fully involving local and regional governments in the design and implementation of sustainable development policies.

A contribution to the global SDG debate

Beyond policy recommendations, the report showcases good practices from across Europe and explores how local and regional governments are advancing the goals under review in 2026 (SDG 6 – Clean Water and Sanitation, SDG 7 – Affordable and Clean Energy), SDG 9 – Industry, Innovation, and Infrastructure, and SDG 17 – Partnerships for the Goals). It also includes a dedicated focus on housing and the outcomes of discussions linked to the World Urban Forum, reflecting growing concerns about affordability, inclusion and sustainable urban growth.

As the international community approaches the final years of the 2030 Agenda, the report sends a strong and consistent message: the SDGs will be achieved — or missed — at the local level. Empowering towns, cities and regions with the necessary political mandate, resources and partnerships is therefore not optional, but essential.

Discover this report also online: European Territories Localise the SDGs

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GAUDRON Marine
In Housing, Housing, Impact community Cohesion, Impact community Cohesion, Impact community Labour, Impact community Labour, Impact community Society, Impact community Society, Latest, Publications, Territorial development, Territorial development

“Right to Stay” strategy

Right to Stay strategy news

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

468 words
2–3 minutes
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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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BENNIS Hamza
In Impact community Cohesion, Impact community Labour, Impact community Labour, Impact community Society, Impact community Society, Latest, Public services, Public services, Publications

Statement on public procurement

Public procurement services news

Call on European institutions to safeguard public-public cooperation and in-house provision in the Revision of the Public Procurement Directives 

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1–2 minutes
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Public-public cooperation and in-house provision are essential tools enabling local and regional governments to organise, deliver, and manage public services directly — whether through cooperation with other public authorities or through entities under their control — without resorting to external operators.  

The Council of European Municipalities and Regions (CEMR) released a statement in which it expresses its strong opposition to calls and proposals that further restrict public-public cooperation and in-house provision in view of the upcoming Revision of the EU Public Procurement Directives.  

In this new statement, CEMR argues that public-public cooperation and in-house provision are firmly grounded in the EU Treaties, the Public Procurement Directives, and the case law of the Court of Justice of the European Union. Local and regional governments must retain the freedom to choose the delivery model that best serves their communities — including direct provision and cooperation with other public authorities.  

CEMR also takes aim at the notion that public-public cooperation or in-house provision harms competition. There is no evidence to support that claim; if anything, these models can improve efficiency, support investment, and strengthen essential public services for citizens.  

Additionally, at a time of growing geopolitical uncertainty, cybersecurity risks, and growing pressure on public services, local authorities cannot afford to lose the flexibility to organise critical services in-house or through trusted public partnerships.  

CEMR calls to the European institutions for greater legal certainty — not further restriction — in the revision of Article 12 of the Public Procurement Directive, while safeguarding the right of local and regional governments to organise public services according to local needs and democratic choices.  

To complement this information, you can also read here CEMR’s position paper setting out what local and regional governments need from the revision of the 2014 Public Procurement Directives. 

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BORDELOT Federica
In EU budget, EU budget, Impact community Cohesion, Impact community Cohesion, Latest, Publications

EU budget political declaration

Leaders Summit Finland 2026

CEMR local leaders adopt a political declaration in support of an EU budget that works for every territory

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Gathered in Rovaniemi on 5 June, local leaders call on the EU’s Heads of State and Government to include the European Parliament’s EU budget recommendations on multilevel governance, territorial delivery and predictable funding into their negotiations with the Council

Local leaders of the Council of European Municipalities and Regions (CEMR) Policy Committee have adopted a political declaration calling on EU Heads of State and Government to incorporate the European Parliament’s key recommendations on the next EU budget (2028-2034) into their negotiations in the European Council. The declaration, with 55 signatories, approved during the CEMR Leaders’ Summit in Rovaniemi, comes at a crucial moment in the interinstitutional discussions on the upcoming Multiannual Financial Framework (MFF).

By endorsing this declaration in support of an EU budget that works for every territory, CEMR members urge to ensure that the next long-term budget is fit for the EU ambition for cohesion, competitiveness and global partnership. Addressed to national leaders, the declaration makes the case for a budget that is place-based, predictable, and grounded in genuine multilevel governance.

A particularly significant timing

The declaration follows the European Parliament’s adoption of its interim report on the 2028–2034 EU budget on its plenary meeting of 28 April 2026 in which the Parliament set out its political priorities and will be the basis of negotiations with the Council.

As Member States meeting on 18-19 June Council will finalise their position, CEMR calls on them to take into consideration the position and proposals put forward by the European Parliament towards an EU budget that delivers competitiveness, cohesion, and trust across all territories.

Key asks of the political declaration

In practical terms, the declaration encourages Heads of State and Government to uphold the European Parliament’s key recommendations on multilevel governance, territorial delivery and predictable funding under the future National and Regional Partnership Plans (NRPP). It also calls for the continuation of territorial innovation and competitiveness tools, as well as stable and predictable support for innovation, scale-up and investment in towns, cities and regions under the future European Competitiveness Fund (ECF).

Local and regional governments are essential to turning EU priorities into concrete projects, services and investments on the ground. Among the main calls of the political declaration, it urges to preserve strong and clearly allocated funding for Cohesion Policy, which will secure key investments for economic, social and territorial cohesion in all regions.

It also insists that local and regional governments must be properly involved in the design and implementation of future NRPP.

The text further calls for the protection of integrated territorial and urban development tools, stronger administrative capacity for local and regional governments, and a more realistic approach to performance and delivery rules for long-term investment.

On competitiveness, the declaration argues that the future ECF must be accessible across all territories and better connected to local realities. It also calls on the EU to recognise local and regional governments as full partners in external action and development cooperation.

The overall message is clear: if the EU wants its next budget to produce tangible results for citizens, it must give local and regional governments the means and the role to make that happen.

CEMR advocacy campaign on the next EU budget

This action is part of CEMR’s wider campaign on the future EU budget. The campaign stresses that the decisions now being negotiated will shape the European Union’s ability to invest in people and places for the next decade. It also warns that greater flexibility in the new budget architecture must not come at the expense of safeguards for place-based investment, multilevel governance and predictable funding for towns, cities and regions.

For more information, contact:

GAUDRON Marine
In Housing, Housing, Impact community Cohesion, Impact community Cohesion, Latest, Publications

CEMR Housing Task Force

EU housing news 2026

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

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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

For more information, please contact:  

BORDELOT Federica
In Housing, Housing, Impact community Society, Latest, Publications

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

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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:

TONHAUSER Boris
In EU budget, EU budget, EU enlargement and eastern partnership, Latest, Local democracy, Local democracy, PLATFORMA, PLATFORMA, Publications

Global Europe 2028–2034

Global Europe - position paper

Local and regional governments at the heart of “Global Europe 2028–2034”: our Policy position

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As the European Union prepares its next Multiannual Financial Framework (MFF) for 2028–2034, the Global Europe instrument will define the EU’s external action for the years ahead — encompassing development cooperation, humanitarian aid, enlargement support and Global Gateway. Discover PLATFORMA detailed policy position outlining how this strategic instrument should be shaped to foster sustainable global partnerships and advance inclusive governance.

At a time marked by intersecting global crises — from climate breakdown and shrinking development funds to geopolitical instability — the role of local and regional governments (LRGs) is more critical than ever. PLATFORMA’s paper is thus anchored in the belief that effective global action starts from the ground up.

Local and regional governments as co-decision-makers, implementers and partners

PLATFORMA’s position starts from a stark reality: despite their proximity to citizens and deep knowledge of local contexts, LRGs remain under-recognised in EU external action frameworks. The coalition calls for the Global Europe instrument to move beyond symbolic references to “local authorities” and embed mechanisms that genuinely empower LRGs as co-decision-makers, implementers and partners in EU external policies.

Key recommendations

The Policy Paper makes 9 key recommendations to EU decision makers:

  1. Strengthen multilevel governance in Global Europe and place local and regional governments in the driving seat of territorial development
  2. Pair flexibility and simplification with ambitious official development assistance targets, and enhance accountability and transparency mechanisms
  3. Unlock Global Gateway’s potential through the involvement of local and regional governments
  4. Foster EU delegations’ engagement with local and regional governments
  5. Recognise and empower local and regional governments as unique and effective development partners in fragile contexts
  6. Advance the localisation of the Sustainable Development Goals to achieve decarbonised societies and climate justice
  7. Involve citizens through Global Citizenship Education as a key component of decentralised development cooperation
  8. Foster inclusive and participatory local governance: empower youth, women, and disadvantaged and underrepresented groups
  9. Strengthen local governance through the EU Eastern neighbourhood and enlargement strategy

Through these recommendations, PLATFORMA aims to improve the current proposal for the Global Europe instrument, so that it fully recognises, acknowledges, and supports the contribution of local and regional governments to EU external action, notably through decentralised cooperation as a development aid modality.

PLATFORMA also calls on the European Commission to issue an updated Communication on the structured involvement of local and regional governments and their associations in the new (geo)strategic approach to EU external action.

Read the full Policy position

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