Europe is facing a growing cost-of-living crisis. Rising energy prices, driven in part by the conflict in the Middle East, are putting further pressure on households and businesses, with inflation expected to peak at the end of 2026.
Citizens are calling for action. Renew Europe has thus responded with a ten-point action plan in the European Parliament to make life more affordable and strengthen economic resilience.
Too many European families, workers and businesses are struggling with rising costs. While Europe cannot control decisions made by the Trump administration, it can choose how it responds to the challenges facing its citizens.
We cannot accept a Europe where parents skip meals to feed their children. Making life more affordable is not only about providing immediate relief, but about building a stronger future. Our growth, competitiveness and purchasing power depend on it.
A united European response is essential to protect citizens from economic shocks, safeguard prosperity and ensure that high living standards remain accessible to everyone.
Renew Europe’s First Vice President, Billy Kelleher MEP (Fianna Fáil, IE), says:
“Our citizens and in turn our businesses are being crippled by excessive bureaucracy, gold-plating by Member State governments, and a cost-of-living crisis that is making life harder for families.
That is not the Europe our citizens want, and it is not the Europe that liberals and democrats will accept any longer. Affordable homeownership and a fair rental market must become the norm, and must once again become the bedrock of a strong European economic and society."
Sigrid Friis Frederiksen MEP (Radikale Venstre, DK) says:
“Energy bills are taking up far too much of Europeans’ monthly budgets. We have the responsibility to invest massively in renewable energy. We owe that to citizens, businesses and our security. By investing in renewables, Europe can break free from energy dependencies, strengthen our economy and take charge of our own future with homegrown, cheap energy.”
The action plan
Renew Europe’s plan focuses on several key areas:
- Energy Independence Now
Geopolitical tensions and volatile energy markets have made Europe more vulnerable to price shocks.
Europe must phase out fossil-fuel subsidies, accelerate clean energy investment through REPowerEU and improve energy-market stability. The EU Emissions Trading System (ETS) should remain an important tool for driving decarbonisation while supporting European competitiveness.
- Housing for All
Europe’s housing crisis is putting increasing pressure on families and young people. Labour shortages, limited supply and speculative investment are contributing to rising housing costs, while many young Europeans are delaying major life decisions because they cannot afford a home.
Europe needs to cut unnecessary red tape, support the construction of more homes and ensure that affordable housing is accessible to everyone.
- A Single Market That Works
Europe needs a stronger and more effective Single Market to compete globally and reduce costs for citizens and businesses. We should remove the “Terrible Ten” barriers holding back the Single Market, digitalise cross-border services and address the €500 billion investment gap.
Reforming state-aid rules, prioritising European projects and mobilising private investment can help strengthen Europe’s economy while bringing down costs for households.