MEP Ciaran Mullooly: EU Draft Report Calls for Radical Action on Housing Supply, Planning Reform, and Rural Renewal

The European Parliament’s Special Committee on the Housing Crisis in the European Union has published its first draft report, proposing continent-wide measures to tackle what Vice-Chair Ciaran Mullooly MEP described as “outrageous housing problems around Europe.”

In an interview with Carol Tallon on iProperty Radio, MEP Mullooly said the report represents “a first serious attempt to confront the scale of the crisis,” but admitted the initial draft is “pretty much underwhelming” in parts.

“After six months of talking, we’re finally coming round to firm proposals to deal with the outrageous issues of housing problems around Europe,” he said. “The rapporteur’s report is out, and all parties in Parliament will now bring amendments. I’ll be putting forward several to ease the problems for people trying to get a roof over their heads in Ireland.”

Housing supply at the root of the crisis

The report identifies insufficient supply as the central cause of Europe’s housing crisis and warns that unaffordability now poses “a major economic threat to the EU’s competitiveness.” Mullooly said prices have “gone up by as much as 80 percent across Europe,” with rents rising by 20 percent in the past year.

He welcomed the report’s emphasis on devolving delivery to local and regional authorities:

“I’m one of those who believe county councils should once again be given responsibility. When town councils were there, they could identify land and local contractors. We’ve lost so many small builders around the country. Large-scale contractors alone won’t solve Ireland’s housing problem — we need smaller contractors, cooperatives and social-housing groups back in the game.”

Planning reform and local authority empowerment

Planning delays were described by the MEP as “the single biggest block” to new housing across Europe.

“Weeks and months of delays – and on the last day you get a request for further information. It’s crazy. We need emergency legislation to fast-track approvals where land is already zoned. Other countries are doing it; so should we.”

He said the Committee supports introducing emergency planning legislation and shortening appeals – ideas that echo long-standing Irish calls for reform.

Mobilising private and public investment

The draft report urges Member States to relax State-aid rules and leverage the European Investment Bank (EIB) to unlock private and public finance. Mullooly described this as “a breakthrough”:

“At the moment, strict State-aid rules actually prohibit public-private partnerships in some places. The new report suggests relaxing those rules so we can build with the funding that’s available – especially for essential workers like nurses, teachers and Gardaí.”

He also called for Irish local authorities to have direct borrowing capacity with the EIB, and for regional assemblies to take a stronger role as development partners:

“In other EU countries, regional authorities are shareholders in developments. They have skin in the game. Our chief executives here should be able to make quicker decisions without always waiting on departmental approval.”

‘Right to Stay’ and rural housing

A major feature of the report – and one of its most relevant to Ireland – is the call for a specific EU housing plan for rural, insular, cross-border and outermost regions. Mullooly praised the inclusion of the ‘Right to Stay’ principle:

“That’s not just three words. It’s about recognising that people have a right to live and build in their own communities. The report says: build on what you have, renovate what you have.”

He said Ireland’s planning system must enshrine that right in law:

“All the carry-on of asking people to prove their local roots should end. It should be a principle of planning that people can live where they come from. Europe gets that – and it’s time Ireland did too.”

Tackling dereliction and vacancies

Mullooly called for stronger compulsory purchase powers (CPOs) and higher grants to renovate empty and derelict buildings:

“If it’s a housing emergency, treat it as one. We should raise the Croí Cónaithe grant to €100,000 where a property is rented to someone without a home. That would take people off the housing list and bring buildings back to life.”

Workforce shortages and skills

The Committee warns that Europe faces a shortfall of two million construction workers over the next decade. Mullooly said the issue is acute in Ireland:

“We don’t have the people on the ground or the apprentices. We’re piloting a scheme in the Midlands to give transition-year students Safe Pass training to spark interest in construction. Communities, schools and local universities all have a role to play.”

Listening to communities, not just developers

Mullooly insisted that future housing policy must “listen to the community this time, rather than the big developers who were often driving policy in the past.”

“I want to see cooperatives, voluntary groups and even the GAA involved in community housing. When people are part of the decision, they don’t object. That’s how you build acceptance.”

Next steps

Amendments to the report are due by 24 October 2025, with cross-party negotiations to follow. The final report is expected to go before Parliament by February 2026, alongside approximately €15 billion in EU funding for social and affordable housing.

Mullooly said Ireland’s new Housing Minister, James Browne TD, must act with urgency:

“Ireland needs that money from Europe. The Minister should take the key proposals from this report, draft emergency legislation, and go for it. If it ends up in court, so be it – but at least we’ll have tried.”

He concluded:

“This is an emergency. If land is zoned and services are in place, we should be building next month, not next year. The European report gives us the impetus – now we need the will.”