Catalonia and the Basque Country have jointly demanded permanent European Union funding mechanisms for affordable housing construction, according to officials from both regions. Territory Councillor Sílvia Paneque and Basque Housing Councillor Denis Itxaso presented their ten-point proposal to the European Commission on Tuesday. They seek special fiscal treatment for public housing investments under new EU fiscal rules. This coordinated position marks significant regional cooperation on housing policy ahead of the European Housing Plan development.
The Joint Proposal
Councillor Itxaso stated housing has become a “priority” requiring “specific fiscal treatment.” The proposal requests that affordable housing investments remain exempt from penalties under fiscal rule violations. Both governments advocate for long-term, low-interest financing through the European Investment Bank. This would stimulate protected housing construction and promote building rehabilitation. The ten-point declaration includes maintaining housing connections to employment, equality and territorial cohesion policies. Additionally, it calls for making housing policies structural rather than temporary measures. The Basque councillor emphasized housing as “social infrastructure” deserving special consideration within deficit objectives. This approach mirrors pandemic recovery strategies that avoided severe austerity measures.
Broader Implications
The collaboration between Catalonia and the Basque Country represents growing regional alignment on housing challenges. Councillor Paneque celebrated the partnership as a “firm and decided” commitment to solving housing shortages. She noted that in Catalonia, limited housing supply has been exploited by populist movements as “confrontation elements.” Both officials identified young people as facing the greatest difficulties accessing housing. They requested the European Commission establish a “flexible framework adapted to different territories.” Councillor Itxaso observed that housing access problems now affect middle-class citizens beyond vulnerable groups. This reflects wider housing pressures across Spanish regions, as seen in recent demands for increased Barcelona housing investment.
The joint declaration aims to apply territorial convergence criteria to reduce inequalities between European regions. Both councillors emphasized that European housing policy must become “structural” rather than responding to “occasional funds.” Itxaso described the European Commission’s regional consultation process as a “historic opportunity” for shaping Europe’s future. The Spanish government’s housing ministry position paper aligns with some regional concerns, according to officials familiar with both documents.
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