ECOFIN Headed to a Positive Direction

YOGYAKARTA, Indonesia - On 1st of November 2025, Nations met at ECOFIN to discuss

the distressing housing costs. The growing concern of global housing unaffordability as of the

direct result of increasing interest rates, was the main topic for ECOFIN. Many delegates

highlighted how there is a need for fiscal intervention.

Many delegates continuously showed how the private market directly influenced the rampant

costs of housing. Multiple delegates reportedly highlighted the supply cannot match the

demand. The supply being set at an arguably unnecessary price, leading to a shoot in housing

costs.

Furthermore, delegates discussed the loose regulation towards speculative buying. During the

session, the delegate of Canada stresses the unregulated speculative buying, which is leading

to the unchecked hike in housing costs. The delegate mentioned that because private entities

are able to purchase housing for short term profit, they are also able to manipulate the rent,

which is another factor in unaffordable housing.

One delegate said “Private markets are buying out houses while having nothing inside of

them… only for profit… able to jack up rent”. This emphasis on private entities speculative

buying real estate, shifted the session’s talking point. Another delegate mentioned that the

global community currently has not committed to finding a solution, let alone have a stable

housing economy.

Following extensive and productive dialogues, representatives from Finland, Germany, Greece,

Canada, and numerous others presented credible and logical approaches to address speculative

buying. Notably, Finland's delegation proposed taxing real estate investments, with a focus on

penalizing speculative purchases, and channeling the resulting funds into subsidies for affordable

housing. Meanwhile, Greece advocated for the establishment of a global housing stability and

affordability body—an international oversight entity tasked with monitoring policies to curb

speculative real estate acquisitions. Various delegates contributed additional practical and feasible

ideas to complement these initiatives.

Nonetheless, the assembly was confronted with the harsh realities of the housing crisis. Although

some nations have implemented taxes to support subsidized housing, a delegate pointed out that

these benefits often do not reach those most in need of affordable rent. Barriers such as addiction,

extreme financial burdens that hinder loan applications, or other disqualifying factors frequently

prevent access. The consensus was that the magnitude of the crisis outstrips the effectiveness of the

proposed measures.

The council recognized that for any resolution to succeed, it must directly confront the

underlying realities of the problem.

By this juncture, the participants had grasped the root cause of the issue, a realization that

emerged only after the full session's deliberations. Still, they reached a unified accord to

dedicate the next meeting to in-depth discussions on this core matter.