MEPs call on European Investment Bank to improve housing plan

MEPs have called on the European Investment Bank (EIB) to improve its housing investment strategy. 

In a detailed letter to the EIB leadership regarding its upcoming housing action plan on Monday (27 January) and seen by Euobserver, the 49 Green and leftwing MEPs say the bank should focus its investments on affordable housing. 

“In the EU in 2023, housing costs exceeded 40 percent of disposable income [for one-in-ten households] in cities, and seven percent of households in rural areas,” wrote the MEPs led by Maria Ohisalo from the Greens political group. 

“The bank can play a key role in helping address current pressing needs in affordable and social housing,” they added. 

They also point out that “between 2010 and 2022, rents rose by 18 percent on average,” while over 1.3 million people face homelessness across the bloc. 

The EIB should therefore prioritise investment in housing for the public benefit rather than profit-seeking housing projects. 

“Investment decisions should not be determined by the amount of private finance mobilised through derisking of investors like private equity funds and real estate companies, who look to capitalise on the crisis to pay out dividends to shareholders,” they write.