MEPs push to use EU regional funds for affordable housing and climate‑proofing cities

20 Oct 2026, 16:33 by https://euobserver.com/author/zuzanna-stawiska/ · EUobserver

The report by MEPs also highlights ensuring cities are better prepared for the over-heating climate (Source: EPA)

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By Zuzanna Stawiska,
Brussels
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The European Parliament has called for more spending to build affordable houses — using funds for regional development that currently make up a third of the EU budget.

Cohesion funds should be used to protect the ‘right to stay’ in rural areas or in small cities, a principle that the parliament wants to write into the new budget legislation.

Peripheral regions often face depopulation due to few job opportunities, according to a parliamentary non-binding report passed with 601 votes in favour, 20 against, and 36 abstentions on Tuesday (20 October).

MEPs are also calling for strong cohesion funds that would allow cities to better prepare for climate emergencies and provide a budget for additional investments in housing.

Cohesion funds, which account for a total of €48.03bn in the existing 2021-2027 EU budget, usually finance infrastructure projects, like bridges, roads, or railways in countries with a lower-than-average per capita gross national income.

The commission proposed significant cuts to reduce regional funds in the next multi-annual budget, set to cover 2028-34, but a group of 16 member states, often benefitting from the funding, opposed the reduction.

Regional development plays a key role in European integration since it is the “only instrument which can unite all of us,” and should not be reduced in the next EU budget, said Left Lithuanian MEP Vytenis Povilas Andriukaitis during a plenary debate on Monday (19 October).

Cohesion funds “could be the response to the radicalisation of Europe,” Fredis Beleris, a German centre-right MEP said.

For that to happen, cohesion funds must be accessible for small and medium-sized cities, who often struggle with formalities linked to EU funds, said Denis Nesci, Italian conservative MEP spearheading the file.

Small municipalities should be able to access cohesion funds “on an equal footing as bigger cities,” he said, echoing the dominant centre-right commission’s position and its aim to simplify regulations.

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