29 European mayors criticise EU plans to cut subsidy for housing.

The EU plan to cut subsidy for housing has been met with outcry from 29 European mayors, among them Vienna’s Michael Häupl.

The EU argued that municipal subsidiaries on housing are causing problems in competition among private housing markets and that it violates financial aid rules. But those who slammed EU’s plans to pull out subsidy for housing explained that affordable flats help prevent social segregation and promote social mix.

During a ‘crisis summit’ among European mayors in Brussels, Häupl said the EU plans are ‘wrong,’ saying ‘We do not want any social segregation, but strive for a social mix.

‘All those responsible for this sector should have an interest in ensuring that affordable flats are available to all people across Europe.’

At present, 60% of Viennese live in subsidised housing. Residents of the city with an income of up to €42,250 are eligible to apply for social housing.

Aside from Häupl, mayors who are against EU’s plan to reduce subsidies for housing come from Barcelona, Berlin, Milan and Paris. The mayors have already brought up their concerns to the President of the European Commission José Barroso.