The European Construction Industry Federation (FIEC) has submitted its formal response to the public consultation on the Housing Simplification Package, the initiative through which the European Commission aims to lay the regulatory foundations for 2027 under its European affordable housing plan. For the sector, red tape, overlapping rules and tighter credit threaten its productive capacity.
Administrative red tape, regulatory overlaps and tightening credit conditions threaten to strangle the productive capacity of the building sector in the European Union. That is the warning issued by FIEC in its contribution to the public consultation on the Housing Simplification Package, a strategic initiative within the European affordable housing plan with which the EU executive seeks to lay the regulatory foundations for 2027.
The stance of the European construction sector is clear: without a substantial reduction in processing times and bureaucracy-related costs, it will be impossible to reach the goal of over two million homes annually that, according to the European Commission’s own estimates, the EU requires to respond to the current demand for housing access.
Licensing and permits: binding deadlines and a one-stop shop
To correct the administrative bottleneck suffered by building and renovation projects, FIEC advocates a comprehensive reform of licensing and permitting processes. The proposal prioritises streamlining the entire approval cycle, from preliminary opinions to final authorisations.
Key measures include setting binding deadlines for all authorities involved, creating a shared digital portal for coordinated decision-making and implementing a single point of contact (one-stop shop) that simplifies the developer’s relationship with public bodies.
FIEC proposes a shared digital portal, a one-stop shop and binding deadlines to prevent bureaucratic delays from continuing to drive up building costs.
In the field of environmental sustainability, the European employers’ association calls for a principle of maximum documentary efficiency: the reuse of valid environmental studies already prepared in previous procedures, with updates required only when a substantial change in circumstances occurs. This mechanism would eliminate unnecessary duplication of documentation while fully preserving the legally required environmental assessments and guaranteeing effective access to justice.
Assessing the economic impact of regulation and clarifying competences
Another central pillar of FIEC’s contribution is the demand to rigorously assess how current and future regulations affect the final cost of housing and construction schedules. The federation urges a detailed audit of the economic impact of the financing interest paid while projects await administrative authorisation, stressing that this legislative analysis must be carried out without adding a new process or additional layers of project approval.
The sector calls for an audit of the financial impact of administrative waiting times and for identifying which requirements stem from the EU and which from national level.
Likewise, to tackle over-regulation and overlapping requirements, FIEC urges Member States to formally break down and clarify which requirements come directly from European Union law and which are additions introduced at national level. This distinction is essential so that simplification efforts can be precisely targeted at the corresponding level of government.
Environmental proportionality, prudent financing and regulatory stability
Regarding environmental requirements, the sector calls for proportionality criteria that take into account pressing housing needs, especially where regulatory restrictions may hinder development and densification within existing urban areas. It also requests clearer rules to provide legal certainty and allow the safe reuse of construction materials within circular economy models.
Contractors ask for an assessment of whether banking requirements hinder credit for viable projects, and for practical SME-friendly guidance on the EPBD and the CPR.
On the financial side, the organisation asks the European Commission to assess whether bank regulatory requirements are unnecessarily restricting lending to technically viable residential developments. FIEC maintains that any adjustment in this area must be based on the actual risk of each project and the strict preservation of financial stability.
Finally, the federation stresses that regulatory predictability remains essential for the day-to-day operations of construction companies. FIEC supports the effective application of the Energy Performance of Buildings Directive (EPBD) and the Construction Products Regulation (CPR), although it considers the current reopening framework inappropriate. To ensure their correct implementation, it calls for practical guidelines for contractors, together with documentation adapted to small businesses and a transparent definition of direct responsibilities on construction sites.