1. Consequences on employment The point of view of the European Contractors UNIEP Policy Day Brussels, 12th November 12th November 2012 Riccardo Viaggi Secretary General European Builders Confederation The Voice of Construction Crafts and SMEs in Europe

2. Established in 1990  22 members & partners - 17 MS  Exclusively SMEs and crafts  2 millions construction crafts and SMEs  Takes part in sectoral social dialogue

3. The EU Construction Sector The Voice of Construction Crafts and SMEs in Europe 3 million enterprises 92% < 10 employees 80% of the turnover 67% of the employment

4. The European Situation  Last Eurostat unemployment figures  11.4% for the Eurozone, 10.5% for the EU  Steady decrease of employment rates – from 17 to 14 million workers  Loss of production and output – from since 2008  No real forecast to come out of the crisis – see attached sheet  UEAPME SME Barometer 2012: 50,000 craftsmen covering 4 sectors. The crisis had a huge impact, particularly on micro enterprises  Some countries are avoiding the crisis (2.2% unemployment in Switzerland) and Poland is starting to see it only now.

5. SPAIN 1/2  800,000 JOBS LOST  Companies liquidated  5 million unemployed people since 2008.  9% fall of the activity still foreseen for 2012.  Job losses is a continuous phenomenon,  construction sector is the second most hit

6. SPAIN 2/2 Huge budgeary cuts will put an additional burden on the sector and impede the activity from developing. Important payment of public debts for works undertaken BUT public works STOPPED No funding  no activity  disappearance of companies  150,000 additional job losses foreseen Little hope is in the private investment, and the move the Spanish government has made to implement the German model of professionnal training, proven to be job-creating.

7. FRANCE 1/2  Nearly 11% of unemployment in France according to Eurostat.  Construction sector = 7% of GDP, 350,000 companies, 1.1 million of workers, 17 190 job losses in 2011, and a prediction of 35,000 jobs lost in 2012.  Since 2008, 18% of job losses occured in the construction sector.  The Modernization of Economy law brought problems with the decrease of fiscal bonuses and positive fiscal regimes (reduced VAT)  The « Gallois report » of November 2012 - raise in property tax  Stop construction projects when the sector is already suffering

8. UNITED KINGDOM 1/2  First sector suffering from company failures, and second in terms of job losses for 2012.  Between 2007 and 2011, 281,000 jobs lost, 24,000 only for the first semester 2011. Moreover, salaries are falling as well.  Public demand is 40% of activity, but will suffer huge budgetary cuts in 2012  UK Public procurement rules are NOT SME-minded  According to a study lead by our UK member, the Federation of Master Builders, banks are not helping with tight credit

9. UNITED KINGDOM 2/2  The government has not decided yet to make investment for training a priority, but associations and many actors of the construction sector are pushing in that sense.  The industry is losing competences and credibility  No minimum legal requirement to become contractor

10. The European solutions The action of public power SOLUTIONS : improve competitiveness increase renovation/retrofitting activities decrease administrative burden and red tape All resumed in the Commission Strategy for sustainable competitiveness of the construction sector and its enterprises of 31st July 2012 EBC welcomes it and is ready to contribute in favour of crafts and SMEs

11. The European solutions The action of EBC NEED TO BE READY AFTER THE CRISIS -Invest in competences and face demographic challenges - Under Construction III project -Traning and mobility - EuroApprenticeship project) -ATTRACTION OF YOUNG WORKERS IS A PRIORITY ! -Cooperate in European Sectoral Social Dialogue -Which must be more representative and active

12. The Voice of Construction Crafts and SMEs in Europe Riccardo Viaggi Secretary General EBC riccardo.viaggi@eubuilders.org www.eubuilders.org