EU Social Leasing Scheme: Socialists push for a legislative initiative

The potential implementation of an EU Social Leasing Scheme is increasingly gaining attention, as political discussions intensify around how access to affordable zero-emission mobility could be facilitated for low-income households.  

On 21 April, the Socialists and Democrats (S&D) Group in the European Parliament organised an event on social leasing, to present their strategy for a EU-wide scheme. The S&D proposal aims to finance 10 million vehicles through Social Leasing between 2027 and 2032, targeting low-income families, particularly those living in rural areas. 

The S&D Group advocates for a framework that would define common eligibility criteria and establish a joint pooling of demand across Member States. Two possible implementation models are currently being considered: 

• Member States would directly acquire vehicles and make them available through Social Leasing schemes; or 
• Member States would indicate the number of vehicles they intend to finance, after which the European Commission would organise tenders allowing vehicle manufacturers to submit offers. 

During the event, several stakeholders contributed to the discussion, including Richard Knubben, on behalf of Leaseurope and Eurofinas. Building on previous exchanges between Leaseurope and the S&D Group, he reiterated the importance of ensuring that any future social leasing scheme considers the existing regulatory framework governing leasing activities. 

In particular, he highlighted that leasing companies operate within a comprehensive regulatory environment, including the revised Consumer Credit Directive (EU) 2023/2225 (CCD2), which strengthens requirements related to creditworthiness assessments, transparency, and the prevention of over-indebtedness. These obligations apply regardless of whether leasing activities are supported through public schemes. 

He also underlined the importance of considering the role of the second-hand vehicle market in any future social leasing framework. Expanding access to used vehicles, including in the electric vehicle segment, would be essential to ensure affordability, consumer choice, and the overall scalability of such schemes. Restricting social leasing exclusively to new vehicles could limit accessibility and increase costs, while a well-functioning second-hand market can help manage residual value risks and support a more gradual and sustainable transition towards zero-emission mobility. 

Looking ahead, Leaseurope and Eurofinas will proactively contribute to the policy debate by developing a practical proposal outlining how social leasing could function effectively at EU level. This proposal will provide a basis for future discussions with policymakers and stakeholders as consideration of a potential European Social Leasing framework progresses.