The demand for immediate solutions that will solve the housing problem is now universal, imperative and pan-European.
The rise in prices for the purchase of a house, the skyrocketing rents, combined with the stagnation or small increase in wages, create an explosive mixture in the market that threatens social cohesion.
The problem of insufficient supply of available housing stock, which is unable to meet demand, is well known. As is well known, it is how this lack of supply has arisen. Therefore, it is up to the authorities, in cooperation with private sector professionals, to find those solutions that will make housing affordable for the middle and low income strata of the population.
Rent freeze
In a statement a few days ago by the European Trade Union Confederation (ETUC), it is noted that the unions are asking for wage increases and a simultaneous rent freeze, as new research shows that housing costs usually exceed the income of low-paid workers in the majority of EU capitals.
In particular, it is pointed out that an analysis of EU data by the European Trade Union Institute found that the cost of renting an apartment in a European capital with two bedrooms is on average €218 more per month, than the legal minimum wages!
The average cost of rent is over €700 more than the minimum wage in Prague, Lisbon and Dublin, while it is over €400 more in Athens, Bratislava, Budapest and Valletta. In Nicosia, according to the survey, the average rent for two bedrooms amounts to 85% of the national minimum wage.
Minimum wages
However, workers who live outside the capital of their country also face problems and difficulties. Taking into account all the cities in a country, it appears that the average cost of renting an apartment represents 42% of the minimum wage.
The lowest paid workers in five countries – Malta, Ireland, the Netherlands, Luxembourg and Estonia – spend more than half of their wages on renting an average 1-2 bedroom apartment, while workers in a dozen other countries spend a third or more.
Collective agreements
In view of the above, the European Trade Union Confederation (ETUC) calls for:
(a) All Member States to fully implement the Minimum Wage Directive, including strong action plans to effectively promote collective bargaining, which will ensure that more workers receive fair remuneration.
(b) Member State governments to take housing costs into account when determining the adequacy of minimum wages.
(c) The introduction of rent regulations to freeze housing costs for workers, protect tenants from exploitation and protect vulnerable families from eviction.
(d) Increased public investment in social housing, including through EU investment tools and a revision of state aid rules.
Poverty and recession
ETUC Secretary General Esther Lynch said that "high housing costs and low wages are driving people into poverty and the economy into recession. The disconnect between rent and pay is completely unsustainable.
When you add to this the rising costs of energy and food, workers are forced to borrow for essentials and virtually no disposable income – making saving for replacing basic household appliances or a visit to the dentist impossible. This is not only bad for individuals but also for Europe's economy. When workers have money in their pockets, they spend it in the real economy. The EU must no longer allow money to be extracted through financial speculation into people's homes. We urgently need to give the European economy a much-needed boost to demand by freezing rents, raising wages and increasing investment in social housing."
Social cohesion
It is recalled that a few days ago, both the president of the Real Estate Development Association, Yiannis Misirlis, and the president of Build Europe, Andreas Ibel, stressed that the housing problem is pan-European and directly affects the competitiveness, the workforce, social cohesion, and the long-term resilience of our economies.
Therefore, a clear and enforceable framework with stable rules is needed. At the same time, however, the necessary adjustments must be made in each country that will focus on the particularities of the market, since the same rules cannot apply in Cyprus as in Finland.
