The Construction 2050 Alliance brings together more than 50 European associations in the built environment. EAE is a member of this powerful alliance. The European construction industry represents more than 5 million companies, around 25 million employees and accounts for 10.3% of the EU’s GDP. Often underestimated, it represents the second largest industrial ecosystem among 16 recognised by the European Commission as central to the European Industrial Plan.
The construction ecosystem is a powerful solution provider for economic, social cohesion and climate action. It is therefore also our responsibility to alert about the escalating economic crisis and its impact on the new housing segment and the construction environment. These repercussions extend beyond mere economic woes, adversely affecting the European Union’s economy, societal fabric, and efforts to combat climate change.
The current socio-economic context is characterised by higher mortgage rates, inflation, supply chain disruptions, regulatory constraints, stringent lending criteria enforced by banks, a shortage of buildable land and challenges in obtaining building permits. Consequently, new housing construction has slowed down significantly, making home ownership and home rental more challenging. This occurs as several Member States are facing severe housing shortages, potentially leading to unpredictable social consequences. The challenges in accessing housing, a fundamental human right, risk exacerbating societal discontent, particularly in a year marked by significant elections
both at the EU as well as at national levels.
An extensive legislative framework has been introduced, as part of the European Green Deal. Given its significance as a cornerstone of the EU economy, the European construction ecosystem, is committed to providing affordable, circular, climate-friendly change/adaption compatible solutions. Under this new legal framework, Member States will step up their efforts to decarbonise the built environment, which is welcome. However, considering the aforementioned context, it is imperative that these measures are implemented judiciously, ensuring that the provision of new affordable homes to our citizens is not compromised.
Read more in the open letter here.
