FIEC Newsletter – 30 Απριλίου 2024

On 9 April, FIEC First Vice-President, Piero Petrucco, took part in the “Clean Transition Dialogue on Construction” chaired by the EU Commissioner for Climate Action, Wopke Hoekstra. The meeting was organised as part of the New European Bauhaus Festival.During the meeting, Piero Petrucco highlighted three priorities for the construction sector in the green transition: (1) the need to maintain a predictable legal framework for the green transition and to close the ‘financing gap’; (2) the need for more regulatory requirements and incentives, including green Public Procurement criteria, to promote circular economy practices; (3) the need to reduce reporting requirements, improve access to capital for construction SMEs and focus on the implementation of the Green Deal.

The European Commission has announced that the “Clean Transition Dialogues” are likely to continue after the EU elections.

On 24 April, the High Level Construction Forum held its 4th annual plenary meeting in Brussels, chaired by Katharina Knapton-Vierlich (Head of Unit “Construction”, DG GROW, European Commission). The date selected for this event marked one year since the publication of the “Transition Pathway for a resilient, greener and more digital construction ecosystem“.FIEC first Vice-President, Piero Petrucco, took the floor as speaker and presented some of FIEC’s commitments to contribute to the transition towards a green, digital and attractive sector. The commitments presented focus on: the EU Taxonomy and its application by SMEs, circular economy and the Pact for Skills.

The European sectoral Social Partners for the Construction industry, FIEC and the EFBWW (European Federation of Building and Wood Workers), have organised the second meeting of the EU-funded project “Follow up of Decentralised Thematic Social Dialogue for the Construction Industry” (DESOCO 2)”. The meeting was held in Vilnius (Lithuania) on 25 April and focused on the digitalisation.The members of FIEC and EFBWW discussed implications of digitalisation on various aspects of the construction sector. From the integration of new tools for work organisation to the impact on health and safety protocols, and the imperative need for upskilling and reskilling to navigate the digital transition.

The DESOCO 2 project, which is co-financed by the European Commission, aims at deepening the exchanges between sectoral Social Partners in the Central and Eastern European countries on some specific priorities that are included in the Multi-annual Work Programme of the Social Dialogue.

Last week, the European Parliament adopted several legislative texts relevant to the construction sector.On 23 April, the Parliament approved the Late Payment Regulation, which will replace the Directive of 2011. The aim of this revision is to address the shortcomings resulting from the current EU legislation. Nevertheless, there are several problematic provisions in the text adopted by the Parliament, in particular as regards the provisions on payments to subcontractors in Public Procurement. FIEC argues that such provisions will only create additional administrative, financial and time-consuming efforts for both the contractor and the client.

On 24 April, the European Parliament approved the new Corporate Sustainability Due Diligence Directive (CSDDD) requiring companies and their upstream and downstream partners to prevent, end or mitigate their adverse impacts on human rights and the environment. The Directive will apply to EU and non-EU companies and parent companies with turnover of more than €450 million. These companies will be liable for damages and can be fined for non-compliance. On the positive side, the adopted CSDDD does not contain an explicit reference to the construction sector, as the Parliament had pushed for.

The European Parliament also approved the revised Regulation on the Trans-European Transport Networks. Notably, the new rules include a provision on maintenance and the life cycle of projects. In other words, Member States will now have certain obligations to maintain the European transport network in such a way that it provides a high level of service, safety and resilience throughout its lifetime. FIEC has long advocated a greater focus on the continuous maintenance of Europe’s transport infrastructure.

FIEC welcomes the conclusions from the European Council meeting (Heads of State and Government) on 18 April 2024.The conclusions state that a new European competitiveness deal is needed, anchored in a fully integrated Single Market. “Creating the conditions for European operators to seize the opportunities of a climate-neutral, digital and circular economy will help the Union to deliver sustainable solutions that work for all. To this end, all relevant instruments, including public procurement, should be used“, the conclusions read.

They also state that investment in key strategic sectors and infrastructure requires a combination of public and private financing working together. Heads of State and Government also consider that deepening the Capital Markets Union is key to unlocking private capital.

The European Council also recommends improving transport connections and mobility within the Union by addressing missing links or bottlenecks.

In addition, the Council wants to increase circularity and resource efficiency, thereby reducing dependence on primary resources, in particular critical raw materials, and invites the European Commission to significantly reduce the administrative and compliance burden on businesses and national authorities, to avoid over-regulation and to ensure the enforcement of EU rules.

Finally, the European Council wants to promote quality jobs across Europe by stepping up the pursuit of the 2030 headline targets through enhanced Social Dialogue, increased labour market participation, “reskilling/upgrading and lifelong learning, addressing skills and labour shortages in the context of wider demographic trends“.