But those efforts have often triggered legal action. Homeowners and tourism operators sued Florence over its restrictions, and Airbnb challenged a €64 million fine imposed by Spain after authorities determined the platform was carrying illegal listings. Although courts ruled in favor of the city governments, the lawsuits nevertheless tied up local authorities in costly, protracted court battles.
Jørgensen said the new legislation would “give the possibility to local authorities which want to take action, to do so in a way that is effective and that does not expose them to litigation risks.” The commissioner rejected industry allegations that restrictions could hurt tourism-dependent economies and homeowners who depend on rental income, insisting that “housing is a right, not just a commodity” and “people need to come before profit.”
He also dismissed industry claims that the Commission is overreaching by legislating on housing, an area where the EU has limited direct competence. Jørgensen pointed out that, under the new plans, national, regional and local authorities will determine which areas are under housing stress and decide whether and how to intervene.
“The goal is not to impose restrictions from Brussels,” he said. “But housing affordability is one of Europe’s most pressing challenges and European institutions cannot be blind to the very concrete daily problems our citizens are facing.”
“If we fail to address this crisis, we risk losing our people’s trust in democratic institutions,” he added. “And that would lead to the rise of extremist political forces.”
The legislation comes almost one year after Commission President Ursula von der Leyen described the EU’s housing shortage as a “social crisis” and pledged to take action.
Jørgensen said the new act represented a “key step to support cities, regions and countries that want to bring immediate solutions to the areas and the people most affected,” but stressed that it was not a panacea.
“The housing crisis is a complex issue,” he said, adding that the bloc still needed to “act on investment, simplification of rules, supply and pressures on the existing housing stock.”
