The European Holiday Homes Association (EHHA) has filed a formal complaint with the European Commission against the Catalan Accommodation Decree (3/2023), arguing that the regulations violate the European Union (EU) Services Directive. The EHHA’s main argument is that the restrictions imposed by this law are unjustified, disproportionate, and fail to effectively address the problems they aim to solve.
Regulations under the EU’s scrutiny
The EU Services Directive states that any rule limiting services, such as short-term rentals, must be justified, proportional, and non-discriminatory. However, the EHHA argues that the Catalan restrictions do not meet these principles. According to the association, these measures not only affect small tourism operators but also have a negative impact on local families and economies.
Impact on communities and the economy
The EHHA warns that blaming short-term rentals as the main cause of housing issues, such as housing shortages or rising prices, oversimplifies a much more complex debate. Factors like urban population growth, lack of investment in new housing, restrictive zoning laws, and high mortgage rates also play a crucial role in this issue.
The association emphasizes that the imposed restrictions could worsen the economic challenges faced by local families and communities, intensifying the impact of rising living costs.
Review and urgent action needed
The EHHA has urged the Catalan government to review and remove the unjust provisions of the law, arguing that these not only contravene the EU Services Directive but also lack solid evidence linking short-term rentals to housing problems.
Furthermore, the EHHA hopes that the European Commission will initiate a formal infringement procedure against Spain, aiming to ensure that local regulations align with EU law.
The challenge of regulatory balance
This case highlights a broader challenge in balancing the need for regulation with the protection of service providers’ rights and fostering local economic development. The EHHA calls for evidence-based dialogue to address the complexities of housing issues without resorting to measures that harm a key sector of European tourism.