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European Union

European Commission to Revise Rules on Public Support for Affordable Housing

Strategic Insights

— 2 min read

The European Commission has launched a public consultation on the revision of rules regarding public support for services of general economic interest in the field of affordable housing. The provision of affordable housing may constitute a service of general economic interest (SGEI) and may be financed without prior approval by the European Commission. However, the current rules do not explicitly define affordable housing, and compensation exceeding EUR 15 million per year may require prior approval.

The European Commission aims to introduce a definition of affordable housing into the SGEI Decision, allowing for compensation without limits or up to a predetermined maximum amount. Additionally, the review will focus on simplifying obligations and updating concepts in the SGEI Decision and the SGEI Communication.

Key Takeaways:

  • The European Commission is planning to revise the rules on public support for services of general economic interest in the field of affordable housing.
  • The current rules do not explicitly define affordable housing, and compensation exceeding EUR 15 million per year may require prior approval by the European Commission.
  • The review will focus on introducing a definition of affordable housing into the SGEI Decision, allowing for compensation without limits or up to a predetermined maximum amount.
  • The European Commission aims to simplify obligations and update concepts in the SGEI Decision and the SGEI Communication.
  • No Member State has made use of the possibility to grant compensation exceeding EUR 15 million per year for affordable housing under the SGEI Decision.
  • The European Commission has approved public support for affordable housing directly under Article 107(3)(c) of the Treaty on the Functioning of the European Union in several cases.
  • Comments on the planned revision can be sent to the European Commission via an online form until 31 July 2025.

Statistics:

  • Compensation exceeding EUR 15 million per year for SGEIs in the field of affordable housing requires prior approval by the European Commission.
  • The European Commission has approved public support for affordable housing directly under Article 107(3)(c) of the Treaty on the Functioning of the European Union in several cases.
  • The review of the SGEI rules is expected to provide more flexibility to Member States to support affordable housing.
  • Comments on the planned revision can be sent to the European Commission via an online form until 31 July 2025.

Sources:

  • European Commission, "Review of the State-aid rules on the Services of General Economic Interest - SGEEI" (2025)
  • Office for the Protection of Competition (UOHS), "The European Commission is planning to revise the rules on public support for services of general economic interest in the field of affordable housing" (2025)
  • European Commission, "European Union Framework for State aid in the form of public service compensation" (2025)
  • European Commission, "Commission Decision of 20 December 2011 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest" (2011)

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