On Thursday, the Court of Justice of the EU ruled that key elements of a controversial Danish housing law may be illegal because they amount to ethnic discrimination. The decision opens the door for Danish courts to potentially repeal or significantly revise the legislation. The law in question is a 2018 reform of public housing regulations commonly known as the “ghetto law”: Until 2021, the term ghetto was officially used by the Danish government to designate certain disadvantaged neighborhoods. Although the terminology has since been changed, the substance of the law has remained largely intact.
What the law provides
Under the reform, by 2030 at least 40% of public housing must be removed—through demolition, sale, or conversion—in neighborhoods classified as “transformation areas”. To receive this designation, an area must meet two conditions:
• It must display at least two serious social problems, such as high unemployment or elevated crime rates
• More than 50% of its residents must come from so-called “non-Western” countries (a category defined by a government list excluding states considered Western)
These criteria have long drawn criticism for explicitly linking housing policy to residents’ ethnic or national background.
Government justification and social impact
The Danish government has consistently argued that the law is necessary to prevent the emergence of socially isolated communities perceived as disconnected from mainstream Danish society (parallel societies). In practice, however, the policy has had severe consequences for many residents as the law allows authorities to terminate tenancy contracts early and demolish entire housing blocks, forcing residents to relocate. Critics argue that people living in designated areas are far more likely to lose their homes than residents of equally deprived neighborhoods with predominantly white populations.
Why the EU ruling matters
By stating that parts of the law may violate EU anti-discrimination principles, the Court of Justice has provided a powerful legal basis for challenges within Denmark itself. If Danish courts follow the EU court’s reasoning, the ruling could lead to the partial or full abolition of the law. For many observers, the decision represents a crucial step toward dismantling a policy that has symbolized Denmark’s hard line on integration and immigration. It also highlights a broader European debate over how far states can go in addressing social segregation without crossing the line into ethnic discrimination. Whether the ruling will translate into concrete legal change now depends on how Danish courts and lawmakers respond—but the foundations of the “ghetto law” appear more fragile than ever.
Read more on Curia.Europa.eu
