EU reforms could cost construction jobs

The European Construction Industry Federation (FIEC) has reported concerns about proposed reforms regarding financial risk across the European Union’s (EU) member states.

Currently at the consultation stage, the so-called ‘Basel III’ reforms could result in increased capital requirements for banks, according to FIEC.

The association believes that, if the reforms are implemented, a significant proportion of the construction industry would be affected.

It says financing conditions of “real estate activities, of small and medium-sized enterprises and of construction projects” could all be restricted.

The association says it estimates conditions for the construction industry, following a wholesale implementation of Basel III, could lead to the loss of as many as 170,000 European construction jobs.

FIEC has uploaded its general comments on the situation to the European Commission’s online consultation site.