Oliver Ropke: The cost of living crisis is a major threat to trust in democracy

The president of the European Economic and Social Committee (EESC) Oliver Ropke warned of dire consequences for society if housing issues and the rising cost of living are not properly addressed.
“The cost of living crisis is a major threat to (…) trust in democracy and also to trust in Europe’s ability to act,” Ropke said in an interview with the European Newsroom (enr) on the occasion of the end of his term.
“We must address it because otherwise, as we are already seeing, fundamental criteria, fundamental rights, and the rule of law are being eroded,” he added.
Since 2010, housing prices have increased by 57.9% in the EU and rents by 27.8%, according to Eurostat data published in July. During the same period, wages have not increased to cover the rising costs.
With construction costs rising and building activity slowing down, fewer homes are coming onto the market. At the same time, more homes are being used for short-term rentals or purchased as investments, resulting in rising prices, particularly in cities.
“We know that there is no one-size-fits-all solution,” Ropke said, but as his 2.5-year term as president of the EESC ends at the end of this month, he hopes that the European Commission will formulate specific proposals, a framework, and an action plan for member states.
The EESC is an advisory body and, although it has no official legislative power, it makes recommendations on housing policy at the EU level. For years, it has also campaigned for more action regarding housing.
The EU does not have direct control over housing issues. This means it cannot legislate or make decisions on matters such as housing prices, building regulations, or housing policy in each country. These are decisions made by the member states themselves.
However, the EU can influence its member states, and the Affordable Housing Plan of the coalition is set to be announced in early 2026.
“This plan will outline what the EU can do, how we can work together for affordable, sustainable, and decent housing for all,” said Dan Jørgensen, the EU Commissioner responsible for housing, last week, while also urging Europeans to contribute to a public consultation on the plan through an online questionnaire.
Ropke argued that one of the key issues that need to be resolved is how housing can be financed. He acknowledged that this will come at a high cost, but added that the cost of inaction will be “even higher.” (22/9/25)