Serbia’s recent headlines have reflected deep political and social tensions. Since the deadly railway station collapse in Novi Sad on Nov. 1, 2024, which killed 16 people, mass protests have spread across the country. Demonstrators have accused President Aleksandar Vučić’s government of entrenched corruption and authoritarianism while demanding greater transparency and democratic reform.

At the same time, Serbia continues negotiations with the European Union (EU) and benefits from major EU-funded development programs targeting poverty reduction, infrastructure and social cohesion.

This political context places Serbia at an important turning point: while public distrust toward institutions grows, EU-backed social programs continue to reshape living conditions for some of the country’s most vulnerable communities.

Poverty and Ethnic Discrimination in Serbia

Serbia remains the largest economy and the most populous state in the Western Balkans, with approximately 6.6 million inhabitants in 2026. Over the past decade, Serbia has experienced notable economic growth and increasing foreign investment. However, this growth has not benefited all parts of society equally.

Around 20% of the Serbian population remains at risk of poverty, particularly in the southern and western regions of the country. Economic inequality, unemployment, weak infrastructure and limited access to public services continue to affect vulnerable populations disproportionately.

Among the communities facing the greatest structural discrimination are the Roma people. Roma communities in Serbia frequently encounter barriers in employment, education, health care and housing. Many Roma families continue to live in informal settlements with poor infrastructure, limited sanitation and insecure housing conditions, which further reinforces cycles of poverty and exclusion.

The EU SHAI Program: Housing as Social Inclusion

In response to these challenges, the EU launched the Social Housing and Active Inclusion Program (EU SHAI), one of Serbia’s largest social inclusion initiatives. Between 2019 and 2025, the EU invested €27 million into the program, while the United Nations Office for Project Services (UNOPS) implemented it alongside Serbian national and local authorities.

Rather than focusing solely on housing construction, EU SHAI combined accommodation with employment support, education, health care access and social services.

The program targeted Roma communities, women escaping domestic violence, people with disabilities, young people leaving state care systems and families living in extreme poverty. It adapted its approach to local needs by constructing new apartments, purchasing rural homes, renovating existing properties and upgrading infrastructure in informal settlements. Projects took place across 19 Serbian municipalities, including Čačak, Loznica, Šabac, Raška and Svilajnac.

The program produced measurable results:

• 127 families moved into newly built housing units
• 14 new family homes were constructed
• 56 village houses were purchased
• 92 homes were renovated
• More than 350 vulnerable families received permanent housing support

Overall, the program supported more than 1,200 people.

Some municipalities achieved especially visible results. Svilajnac and Raška emerged as examples of how long-term coordination between local governments, international organizations and social services can create sustainable improvements for vulnerable communities. In this sense, EU SHAI functioned not only as a humanitarian program but also as a governance and development initiative.

Housing Programs in Serbia for Roma Communities

Serbia has also developed targeted housing initiatives specifically for Roma communities. Through the Let’s Build a Home Together project, the Serbian government, with EU financial support, has provided housing solutions for up to 170 Roma families previously living in unsafe, informal settlements.

Families can choose between apartments, village houses or the reconstruction of existing homes. Authorities designed the program with direct participation from Roma beneficiaries in order to protect housing rights and adapt solutions to each family’s needs. The initiative also places strong emphasis on women’s equal housing rights and property security.

Social Housing for Refugees and Displaced People

Following the conflicts that accompanied the breakup of Yugoslavia in the 1990s, Serbia participated in the Regional Housing Program (RHP), a joint initiative involving Bosnia and Herzegovina, Croatia, Montenegro and Serbia. The program aimed to support refugees and internally displaced persons affected by the Yugoslav wars.

Alongside the RHP, Serbia developed the Social Housing in Supportive Environment (SHSE) program, which has operated since 2002 with support from international donors, the Serbian government, the EU and organizations such as the United Nations High Commissioner for Refugees (UNHCR) and the United Nations Development Programme (UNDP).

The SHSE program provides long-term housing and social protection for vulnerable groups, particularly refugees and internally displaced persons. Since 2002, the program has built 430 apartments across 22 Serbian municipalities, housing approximately 1,100 vulnerable residents. Unlike traditional institutional shelters, SHSE promotes decentralized and community-based housing solutions that integrate beneficiaries into local communities while supporting their access to health care, employment and social services.

Programs Fostering Active Inclusion

What distinguishes the housing programs in Serbia from traditional housing policies is their emphasis on active inclusion. Programs such as EU SHAI recognize that stable housing alone cannot sustainably reduce poverty if families remain excluded from employment, education and health care systems. As a result, these programs combine housing assistance with social and economic support measures tailored to the specific needs of each family.

The initiatives also actively involve the communities they support in the decision-making process, allowing beneficiaries to participate in shaping their own housing solutions and future living conditions rather than remaining passive recipients of aid.

This integrated approach proved especially important for Roma communities, who often face overlapping forms of exclusion. By combining stable housing with education and employment opportunities, these programs aim to break intergenerational cycles of poverty rather than simply manage their consequences.

Serbia, the EU and the Politics of Social Development

The housing programs in Serbia highlight the complex relationship between Serbia and the European Union. While political tensions surrounding democracy, corruption and media freedom continue to complicate Serbia’s accession process, EU-funded social programs remain deeply embedded in the country’s development strategy.

For many vulnerable families, these projects produce tangible improvements in everyday life regardless of broader geopolitical debates. They provide stable housing, access to employment, educational opportunities and greater social protection in communities that have often remained excluded for decades.

Looking Ahead

At a time when poverty, displacement and housing insecurity continue to affect millions across Europe, Serbia’s social housing programs demonstrate how targeted international cooperation can generate measurable social impact even amid ongoing political tensions. By combining housing with active inclusion policies, the housing programs in Serbia offer a model for poverty reduction that focuses not only on shelter but also on long-term social integration.

– Inès Maudire

Inès Maudire is based in Paris, France and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr