European Council President António Costa told regional and city leaders in Brussels that affordable energy, housing and faster decision-making would be central themes as the EU prepares its next long-term budget.
Costa was speaking at the opening of the 24th European Week of Regions and Cities, an annual gathering that brings together local and regional politicians and officials from across the EU, the European Council informed on Monday.
He said cities and regions were often the first public authorities to respond to citizens and businesses, and were “on the front line” of issues including demographic change, the climate and energy transition, and “strategic autonomy” — the EU’s capacity to rely less on outside countries for key needs such as energy, he said.
A major focus of his remarks was affordability, which he described as including the cost of housing, energy and mobility.
Costa linked recent instability in the Middle East to concerns about global energy supplies and said it reinforced the case for decarbonisation and “greater energy independence”, based on renewable and nuclear power produced in Europe.
He stated that member states and regions with a higher share of renewable energy already had “significantly lower electricity prices” than those more dependent on fossil fuels.
Costa also called for “targeted and temporary measures” to protect households and businesses from energy price spikes, adding that the European Commission had already put forward proposals for immediate relief while keeping incentives to save energy.
Housing and the next EU budget
Housing costs featured prominently, with Costa saying access to affordable homes had become “one of our citizens’ most urgent concerns” in cities ranging “from Copenhagen to Lisbon” and “from Dublin to Athens.”
He said housing policy was mainly the responsibility of national, regional and local authorities, but that the EU could “complement their efforts”, noting that he had put the housing crisis on the European Council agenda for the first time in October and that the Commission had since presented an Affordable Housing plan and an Affordable Housing Act.
On energy efficiency, Costa emphasised that measures such as insulation, heat pumps and smart meters could reduce household consumption, and claimed the annual energy cost difference between a poorly insulated and a well-insulated home could reach €5,000.
He also said electricity grids would need expanding and modernising to connect renewable power and meet rising demand, requiring investment and faster permitting.
Turning to competitiveness, Costa pointed out that EU leaders had adopted a “One Europe, One Market” agenda in March and argued that simplifying rules would help people and businesses operate across Europe, particularly small and medium-sized enterprises.
He said lengthy planning and permitting procedures could delay investment and increase costs, and called for faster and more predictable approvals, it added.
Costa also addressed negotiations on the next Multiannual Financial Framework — the EU’s long-term budget — saying talks were entering a “decisive stage” and that an agreement should be reached by the end of the year so the budget could start on time in 2028.
