FIEC Newsletter – 14 Ιανουαρίου 2025

Details of the EU Taxonomy are currently being reviewed by the Platform on Sustainable Finance (PSF). With the aim of improving the usability of the EU Taxonomy, stakeholders are invited to provide their feedback on a draft report by Wednesday, 5 February 2025.According to the mandate of the Platform on Sustainable Finance (PSF) under the Taxonomy Regulation (Regulation (EU) 2020/852), a draft report on activities and technical screening criteria to be updated or included in the EU Taxonomy has been produced. This report presents a set of recommendations of the PSF to the European Commission for the revision of technical screening criteria of activities included in the Climate Delegated Act and for the addition of new activities to the EU Taxonomy.

This call for feedback is an opportunity to provide feedback and evidence from the company level to assist the future development of the EU Taxonomy. Please keep in mind that the draft report is a working document with preliminary recommendations on the technical screening criteria that do not represent a final view of the PSF. The public consultation seeks to obtain additional feedback which will be considered in the final report, which is expected to be completed before the end of the current mandate of the PSF.

The 2nd mandate of the Platform on Sustainable Finance (PSF) was extended until the End of March 2025. A call for applications for the selection of members is therefore expected to open soon.

Our Irish member federation, the Construction Industry Federation – CIF, starts the new year with a new President at the helm, Stephen McCarthy, owner of Astra Construction in Cork.  Astra Construction Services Ltd has specialised in residential construction for the past 34 years and is currently building its largest development to date of 950 homes in Carrigaline.

Stephen McCarthy is actively involved with Homebond and the CIF at both a local and national level and has held various positions in these organisations, including Vice President of the CIF and Director and Past Chairman of Homebond. The new CIF President takes up the torch from his predecessor, Joe Conway, and will continue to tackle the many challenges in which the Federation is already heavily involved.

This year also marks a very special milestone for the Federation as it celebrates its 90th anniversary.  This will be an opportunity to commemorate with its members the remarkable achievements of the past, while reaffirming CIF’s commitment to progress and excellence in the Irish construction industry.

FIEC warmly congratulates CIF and also thanks them for their strong commitment at European level through Philip Crampton, our immediate past President and current Vice-President on the Steering Committee.

Shortly before Christmas, the European Commission published its 2024 annual review of labour markets and wage developments in Europe, as well as the 2nd part of its European Semester Autumn package, entailing a Proposal for a Joint Employment Report. Both reports show that the EU labour market remains strong and resilient.
The EU employment rate reached a record high of 75.3% in 2023 and rose further to 75.8% in the second quarter of 2024. At the same time, the unemployment rate decreased to a historic low of 6.1% in 2023, a trend that continued in 2024. Since 2019, 5.5 millions jobs have been created. Non-EU nationals, including Ukrainians, and older people between the ages of 55 and 64 years contributed to the bulk of this increase. The report also shows that opportunities for older workers to stay in employment are increasing. It finds that, by 2030, there will be an additional 8.8 million workers between 55 and 68, partly due to recent pension reforms in EU Member States.However, both reports warn that low productivity, low levels of adult learning, widespread labour and skills shortages, and an ageing population, could in the long-term undermine the recent positive changes in the labour market, living standards and the EU’s long-term competitiveness.

On 10 January, the European Commission disbursed the first €3 billion of its €18.1 billion Macro-Financial Assistance (MFA) loan to Ukraine, part of the G7-led initiative offering €45 billion in support.This loan aims to address Ukraine’s urgent budgetary needs, supporting military, reconstruction, and macroeconomic stability. Repayment will come from profits generated by immobilised Russian state assets in the EU.

The MFA loan offers favorable terms, with long maturities and no direct repayment from Ukraine. Future disbursements will continue through 2025, contributing to the country’s defense, infrastructure, and economic recovery.

On 18 December, the International Labour Organisation (ILO) published the second edition of its Social Dialogue Report, entitled “Peak-level social dialogue for economic development and social progress”. It focuses on social dialogue established at the highest level within countries, and sets out global and regional trends in this area.The report shows that Europe is characterised by having a high proportion (92%) of permanent national social dialogue institutions (NSDIs). These organisations, which are usually made up of tripartite representatives – employers, workers and governments – sometimes include civil society organisations. Three-quarters of workers and two-thirds of employers view them as effective, namely to tackle the cost of living or the green and digital transition, but concerns remain over inadequate follow-up by governments or public authorities on social dialogue outcomes.

Another matter of concern is the inclusiveness of NSDIs and gaps in relation to the needs of underrepresented groups, such as women and young workers. Moreover, the report emphasizes that countries’ compliance with freedom of association and the effective recognition of the right to collective bargaining has deteriorated by 7 per cent between 2015 and 2022.