The European Commission is considering the preparation of either a regulation or a directive, with a targeted adoption timeline of the fourth quarter of 2026, aimed at modernising and simplifying the regulatory framework governing the construction sector.
Although construction accounts for approximately 12% of the European Union’s gross value added, cross-border activity within the sector remains strikingly limited. Cross-border trade in construction services represents no more than 1% of total activity—well below the average for services as a whole—reflecting persistent regulatory fragmentation, significant administrative burdens, and barriers to market access across Member States.
The Commission identifies several structural obstacles, including the lack of effective mutual recognition of licences, certificates, and professional qualifications; complexities linked to national site access cards; and restrictions on labour mobility arising from the large number of legally regulated professions in the sector. These challenges are particularly pronounced in border regions, where small and medium-sized enterprises often struggle to operate across neighbouring markets.
A range of policy options is under assessment, spanning from stronger enforcement of the existing Services Directive to the mutual recognition of national licences and site access cards, and potentially the introduction of a single European site access card. In parallel, the Commission is examining the development of harmonised European standards for skills and qualifications, with a view to facilitating professional mobility and reducing compliance costs.
The initiative is closely aligned with the EU’s broader efforts to address the housing shortage. The Commission expects that removing regulatory barriers will improve productivity and accelerate the construction and renovation of housing stock, including energy-efficient and sustainable buildings. At the same time, increased competition and lower administrative costs are expected to generate positive economic effects for businesses and consumers alike.
According to the call for evidence for an impact assessment published by the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW), a public consultation of at least 12 weeks has been launched via the “Have Your Say” platform. Member States, businesses, professionals, and social partners are invited to submit views and proposals, which will inform the impact assessment ahead of the final legislative proposal.
The initiative is grounded in Article 114 of the Treaty on the Functioning of the European Union and, according to the Commission, complies with the principles of subsidiarity and proportionality, as coordinated action at EU level is deemed necessary to effectively address the fragmentation of the single market in this strategically important sector.
