Europe is facing a housing contradiction: widespread shortages of affordable homes on one hand, and a large share of underused living space on the other. New Eurostat data shows that one in three people in the European Union live in homes considered under-occupied, meaning they have more rooms than they need.

Under-occupation typically describes properties that exceed household requirements, often because older residents remain in larger family homes after children have moved out. Across the EU, 33.4% of people fall into this category, though national differences are striking.

Cyprus records the highest rate at 69.4%, followed by Ireland at 66% and Malta at 63.2%. The Netherlands (58.5%), Belgium (57%), Spain (54.3%), Luxembourg (52.2%) and Norway (51%) also show high levels. In contrast, Romania sits at just 8.1%, with Serbia, Turkey, Latvia, Greece and Croatia also reporting relatively low figures below 15%.

The pattern is not neatly divided along regional lines. Southern Europe shows sharp contrasts, with Spain among the highest while Italy and Greece sit much lower. Eastern and south-eastern Europe generally report lower levels of under-occupation, while parts of northern and western Europe trend higher.

Housing experts say the imbalance reflects deeper structural issues rather than simple shortages. The European Federation of National Organisations Working with the Homeless (FEANTSA) argues that policy responses focused on penalising under-occupation risk missing the real problem: the lack of affordable smaller homes.

A spokesperson for the organisation said measures like the UK’s “bedroom tax” did not work effectively because households often had no viable alternatives, leaving them financially penalised without improving housing supply. FEANTSA has instead called for greater investment in social housing and efforts to bring vacant properties back into use.

Ownership patterns also play a key role. Eurostat data shows that 40.5% of homeowners live in under-occupied homes, compared with 14.2% of tenants. Researchers say this gap reflects long-term settlement patterns, with owners more likely to remain in larger homes over time.

Sebastian Kohl, a professor at Berlin’s Free University, notes that homeownership is one of the strongest predictors of under-occupation, alongside demographic ageing and household size. Smaller households, particularly single-person and two-person homes, account for most under-occupied dwellings.

Income is another factor, with higher earners more likely to live in larger homes with spare rooms. Urban areas account for 41% of under-occupied housing, while rural regions and towns make up the remainder in roughly equal shares.

Researchers also point to inconsistencies in how countries define a “room,” which can affect comparisons. In some cases, kitchens are counted, adding further variation to the data.

Despite official classifications, perceptions differ. Studies suggest only two in five people in under-occupied homes actually believe their housing is too large, highlighting a gap between statistical definitions and lived experience.

Europe’s largest economy, Germany, and one of its fastest-growing, Poland, may seem like economic opposites, but economist Marcin Piątkowski argues they could form a powerful partnership that reshapes the continent’s future.

In an interview with Euronews, Piątkowski, professor at Kozminski University and author of Europe’s Growth Champion: Insights from the Economic Rise of Poland, described the pairing as a “match made in heaven,” highlighting how Germany’s industrial strength and Poland’s rapid growth could complement each other.

While Germany continues to face sluggish growth and structural challenges, Poland has emerged as one of Europe’s strongest performers. Piątkowski said Poland has been the fastest-growing large European economy since 1990 and is expected to expand at more than 3% annually in the coming years—more than triple Germany’s projected pace.

“Poland is Europe’s most dynamic economy,” he said, adding that the country has increased its income per capita more than threefold since 1990, moving from near lower-middle-income status to levels now comparable with or above several advanced economies.

He credited Poland’s success to what he calls the “five E’s”: egalitarianism, education, entrepreneurship, elites and European Union membership. Together, these factors helped build an economy that is both fast-growing and relatively inclusive.

Poland’s education boom has been particularly significant, with university participation among young people rising from around 10% in the early 1990s to about 50% today. Its diversified industrial base, Piątkowski added, has also helped the country avoid major recessions since the transition from communism.

He stressed the importance of the European Union in Poland’s development, arguing that access to EU markets and institutions has been crucial. Without it, he estimated, Poland’s income level could be around 40% lower.

Germany also benefits significantly from Poland’s rise. German exports to Poland have increased more than 30-fold since 1990, now exceeding €100 billion annually. Poland is now a larger export market for Germany than China, supporting hundreds of thousands of German jobs.

Piątkowski said deeper cooperation could strengthen both economies. German firms bring global brands and technology, while Polish companies offer cost competitiveness and flexibility. He also pointed to opportunities for joint ventures, shared regulatory frameworks, and support for small and medium-sized enterprises across borders.

Looking ahead, he urged Germany to adopt more ambitious economic policies. “Germany needs both more fear and more optimism,” he said, calling for higher public investment, faster reforms, and a stronger focus on innovation, including artificial intelligence and modern manufacturing.

Germany, he warned, risks further stagnation without a bolder approach. Poland, meanwhile, continues to demonstrate how rapid growth can be sustained through investment, education and openness—offering lessons that Europe’s largest economy may increasingly need to consider.

Oil prices declined on Monday after early signs of progress in negotiations between the United States and Iran reduced concerns over potential disruptions in the Strait of Hormuz, one of the world’s most important oil shipping lanes.

At the time of writing, Brent crude was down 0.91% at $79.12 a barrel, while US West Texas Intermediate (WTI) fell 0.70% to $75.32 a barrel. The move came as investors reacted to diplomatic developments that appeared to lower the risk of immediate supply shocks from the Middle East.

Market sentiment softened after Qatari and Pakistani mediators said the first round of US-Iran talks aimed at reaching a long-term agreement had ended with what they described as “encouraging progress.” The discussions form part of a broader framework intended to stabilise regional tensions and restore energy flows through key maritime routes.

Under a memorandum of understanding signed last week, both sides committed to working toward a final agreement within 60 days. The framework also calls for an end to hostilities on multiple fronts, including Lebanon, as well as the reopening of the Strait of Hormuz, through which a significant share of global crude oil shipments passes.

The easing of geopolitical risk helped set the tone for commodity markets, while broader financial markets in Asia delivered a mixed performance. Japanese and South Korean equities advanced, while US futures pointed lower.

Tokyo’s Nikkei 225 index rose 1.6% to 72,364.82, after briefly touching a record intraday high of 72,831.73. Gains were driven largely by technology shares, supported by continued optimism surrounding the global artificial intelligence sector. SoftBank Group, a major investor in AI-related firms, climbed 2.4%, while Tokyo Electron gained 2.3%.

South Korea’s Kospi index added 0.4% to 9,084.37, also hovering near record levels, with semiconductor stocks leading gains. Memory chip producer SK Hynix surged 4.7% amid strong demand expectations linked to AI development.

Neil Newman, managing director and head of strategy at Astris Advisory Japan, said markets remained upbeat but warned of potential overheating. “We’re seeing another strong market today,” he said, noting that Japanese equities may be becoming “a little stretched,” particularly given uncertainty in the Middle East.

Elsewhere in the region, Hong Kong’s Hang Seng index dropped 1% to 23,690.86, while China’s Shanghai Composite Index edged up 0.2% to 4,098.01.

Oil traders continue to monitor developments in US-Iran negotiations closely, with any breakdown in talks likely to revive concerns over supply security and renewed volatility in energy markets.