FIEC Newsletter – 12 Δεκεμβρίου 2023

The current EU rules on late payments have been in place since 2011. But construction companies are still confronted with the problem of late payments. In some Member States, this is of particular concern for construction companies working with the public sector.This is why FIEC has been active on this file. On 16 November, FIEC met with the rapporteur in the European Parliament, MEP Thun und Hohenstein. Last week, FIEC published its Position Paper on the proposal to update EU rules to combat late payments.

FIEC is supportive of clear rules aimed at fostering and safeguarding prompt payments from clients to construction companies and between companies, while also minimising the administrative burden for all parties involved in a commercial transaction.

In the Position Paper, FIEC also expresses its reservations about the introduction of certain proposed provisions relating to payments to subcontractors in Public Procurement, on enforcement authorities, complaints and confidentiality.

On 7 December, EU institutions reached a long-awaited agreement on the recast of the Energy Performance of Buildings Directive (EPBD). The full text of the agreement is not available yet.According to the agreement, each Member State will have to adopt its own national trajectory to reduce the average primary energy use of residential buildings by 16% by 2030, and 20-22% by 2035. Member States are free to choose which buildings to target and which measures to take.

The national measures will have to ensure that at least 55% of the decrease of the average primary energy use is achieved through the renovation of the worst-performing buildings. For the non-residential building stock, the revised rules require to gradually improve it via minimum energy performance standards. 

The revised EPBD will also make “zero-emission buildings” the new standard for new buildings. Member States will also have to ensure that new buildings are solar-ready. On 11 December, FIEC reacted to the agreement in a press release.

“Congratulations to the negotiators on their achievement in reaching an agreement on such a controversial proposal during geopolitical upheaval and after almost two years of intensive talks. The focus now shifts to Member States, who have the responsibility to fulfil the full potential of the Directive”, said Stephanos Pierides, Chairman of FIEC’s sub-commission on environmental affairs.

Following the first trilogue on the revision of the Regulation on the Coordination of Social Security Systems, which took place on 21 November, the Spanish Presidency of the Council of the European Union has shared a new compromise package with the Member States. This package includes a change regarding prior notification.The Spanish Presidency proposes to maintain the two exemptions from the prior notification requirement, namely for activities lasting no more than three consecutive days and for business trips, while excluding the construction sector from the first exemption. This means that prior notification will be required in the construction sector for activities lasting no more than three consecutive days. However, business trips will not be subject to the prior notification requirement.

In addition, the Presidency introduces the following indication: in the case of emergency and pluriactivity, the possibility of late notification, three days after the start of the mission.

Although not all Member States may agree with the new proposals, a number of them would like to reach an agreement by the end of the year.

A second trilogue meeting will take place on 11 December.

The winter edition of FIEC’s General Assembly, hosted in Paris on 7 December by our French member Fédération Nationale des Travaux Publics (FNTP), was a great success. Representatives of FIEC’s member federations and partners met to discuss some key priorities:

• Latest highlights of the Task Force “Ukraine”
• Challenges and opportunities of sustainable finance
• #EU4FairConstruction, the new campaign launched by the ELA (European Labour Authority)
• Europe facing an unprecedent housebuilding crisis: how to tackle the issue, what potential solutions?

During the General Assembly meeting, two new FIEC publications were presented to the participants, namely:

– The FIEC Manifesto for Action – EU term 2024-2029 entitled “Building a resilient and sustainable Europe together“.
The Manifesto is available on this website. Ahead of the European elections in June 2024, we are ready to start disseminating our 10 key messages to the candidates. The Manifesto sets out our vision for the future of construction in Europe and for the sector, over the next 5 years.

– The 2023 edition of FIEC’s Annual Report. Here is a link to this publication.

On 7 December, FIEC – together with EIC (European International Contractors) and CICA (Confederation of International Contractors’ Association) – organised a conference on “Sustainable Finance for Quality Infrastructure and Housing” at the premises of its French member, the Fédération Nationale des Travaux Publics (FNTP).The conference included a panel discussion on the EU Taxonomy of Sustainable Activities, which has major implications for the construction sector. Guest speakers and panelists included Sirpa Pietikäinen, Member of the European Parliament; Piotr Kowalczyk, Policy Officer at the European Commission; FIEC First Vice-President Piero Petrucco; Maria Moreno from the Spanish Association of Infrastructure Contractors and Concessionaires (SEOPAN) and Thomas Devarieux, Policy Officer at the French Banking Federation (FBF).

Discussed items included the usability and practicality of the EU taxonomy, the extent to which it is already being used by financial institutions to assess the sustainability performance of construction companies, and the challenges that remain.

In the week before the conference, FIEC published an updated position on the EU Taxonomy.