Pooling our efforts to cut the cost of living
Everyone should be able to plan their future with confidence, whether that means finding a home, getting to work, raising a family or having access to quality and safe food. At the same time, the cost of housing, energy, transport and food has become a concern for many Europeans.
The rising costs affect businesses’ ability to attract and retain talent and impact public services. For example, nurses or firefighters will not take up jobs in places where they cannot afford to pay the rent and go about their daily lives.
This is why we are acting. Together with European Union countries and regions, as well as businesses and all other stakeholders, the Commission is working on all fronts to help make everyday life easier and create opportunities for people in the EU.
First, we are working to boost competitiveness, so our businesses and industries can offer more and better-quality jobs with adequate income. And we are also focusing specifically on the main areas that affect daily costs:
- housing
- energy
- transport
- food
The goal is to help Europeans find affordable places to live, work, and raise their families, without being anxious about their tomorrow.
Creating opportunities for everyday life
Our efforts to reduce the cost of living are built around three key initiatives:
A home you can afford
A home is the foundation of society, but for far too many Europeans today home has become a source of anxiety. It can mean taking on high levels of debt or facing uncertainty about the future.
- 60%increase in house prices since 2013
- 22%less building permits since 2020
- more than 20%increase in average rents since 2013
This is why we have put forward the European affordable housing plan to make housing more affordable, more sustainable, and of better quality.
The plan seeks to:
- increase housing supply and drive innovation by, for example, simplifying and digitising permitting procedures
- support areas affected by housing shortages, by addressing issues like short-term rentals, through the affordable housing act
- help those most affected by the crisis, by piloting a guarantee scheme to reduce or eliminate the need for a security deposit
- speed up permitting and renovation processes
- boost investment in social and affordable housing through a new pan-European housing investment platform and by simplifying State aid rules
For many families, transport is a major expense. On average, households in the EU spend around one in eight euros of their budget on it. To help address this, we are making it easier and more affordable for people to get around by improving public transport, supporting shared mobility options and encouraging cycling and walking.
The Social Climate Fund is providing €86.7 billion from 2026 to 2032 to support households, small businesses and communities that are struggling with high transport and energy costs. In addition, the electrification action plan sets out different tools, like the use of social leasing schemes to make electric vehicles more affordable for low- and middle-income households.
We are working with industry on a new small affordable cars initiative so that Europe develops its own clean, efficient and lightweight electric car that people can afford. This will also help maintain a strong European automotive industry, which employs 13 million people and supports millions of livelihoods.
Everyone should be able to reliably and affordably reach work, school and healthcare services. That is why we are investing in better transport services, particularly in rural and less connected areas, and helping local authorities address transport poverty.
We invest in better, more sustainable transport through programmes like
- the Connecting Europe Facility supporting the development of sustainable transport infrastructure across the trans-European transport network
- the Urban Mobility Framework helping cities create cleaner and more inclusive mobility systems
- the Transport Poverty Hub enabling cities and regions to identify and address the areas most affected by transport challenges
More affordable energy bills
Geopolitical tensions in our neighbourhood provoked an energy crisis in Europe in the past years. Although we managed to stabilise energy prices and secure supplies, energy prices are still higher than in other parts of the world. And energy bills are a source of anxiety for numerous Europeans. We have already taken a number of steps to bring energy prices down.
Estimated savings for consumers and industry
The new citizens’ energy package aims to lower energy bills and assist the most vulnerable consumers by empowering people to produce their own clean energy and combat energy poverty. What this means for households:
- Saving up to €150 per year by switching to cheaper energy suppliers.
- Saving €200 per year by lowering taxes and levies on their electricity bills.
- Making more informed decisions by providing consumers with transparent information on energy bills and contracts.
The Commission has also presented measures to reduce energy prices by expanding clean, homegrown energy and strengthening infrastructure. This means rolling out renewables faster, while modernising and investing in infrastructure and interconnectors.
Better jobs and livelihoods
A quality job should give everyone the opportunity to build a secure future.
To improve quality of life and strengthen Europe’s competitiveness, the Commission is acting in three more areas:
- First, with the competitiveness compass, we are helping businesses grow and create more and better-quality jobs.
- Second, with the quality jobs roadmap and the future quality jobs act, we are ensuring that jobs keep pace with a modern economy.
- Third, with the new EU anti-poverty strategy we want to eradicate poverty by 2050 by focusing on quality jobs, access to services and income support, and more coordinated action that will address homelessness and the root causes of poverty.
We are also committed to ensuring access to high-quality and affordable food. Europe’s farmers and fishers play a vital role in food security, biodiversity, and environmental protection. We support them, so they can continue producing good, affordable food for everyone.
Looking ahead
By working together across EU, national and local levels, we will step up investment, simplify rules and deliver concrete solutions on jobs, housing, energy, transport and food. The aim is simple: to ensure that Europe remains a place where people can live and work with confidence, security and a good quality of life.
This page was last updated on 15 September 2026