No C 230/54 Official  Journal  of the European  Communities 10, 9. 81 
Opinion  on the  present  situation  in the  Community's  construction  sector  and  the  most 
appropriate  measures  by which  the  EEC  can  promote  growth  and  employment  in this 
sector 
The opinion  of the Committee  is not based  on any  text. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 181st  plenary  session  held  on 24 and  25 September  1980  the Committee,  acting  on a 
proposal  from  the Bureau,  decided  to deliver  an opinion  on the abovementioned  subject  on its 
own initiative. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 189th 
plenary  session  held  in Brussels  on 1,2  and  3 July  1981. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the fourth  paragraph  of Article  20 of the 
Committee's  Rules  of Procedure, 
Having  regard  to the decision  taken  by the plenary  session 
on 24 September  1980  to draw  up, on a proposal  from 
the Bureau,  an own-initiative  opinion  on the  present 
situation  in the Community's  construction  sector  and the 
most  appropriate  measures  by which  the  EEC  can 
promote  growth  and  employment  in this  sector, 
Having  regard  to the oral  report  made  by the rapporteur, 
Mr Evain, 
Having  regard  to the symposium  on construction  and 
growth  organized  jointly  by the Commission  and  the 
Economic  and Social  Committee  on 11 and 12 September 
1980, 
Having  regard  to the opinion  issued  by the Section  for 
Industry,  Commerce,  Crafts  and Services  at its meeting 
on 2 and  3 June  1981  (meeting  of 2 June  1981), 
Having  regard  to the discussions  at its 189th  plenary 
session  held  on 1,2  and  3 July  1981  (meeting  of 3 July 
1981), 
HAS ADOPTED  THE  FOLLOWING  OPINION 
nem con  and  with  one  abstention: 
1. Analysis  of the present  situation 
1.1. Basic  preliminaries:  what  do  we  mean  by 
'construction'? 
For the purpose  of investment,  EEC  construction  divides 
up as follows: — one-third  residential  buildings  (houses,  blocks  of flats, 
etc.), 
— one-third  public-sector  and  commercial 
non-residential  buildings  (factories,  business 
premises,  administrative  buildings,  etc.), 
— one-third  civil  engineering  projects  (public-sector  and 
industrial). 
Construction  should  also  include  what  accountants  call 
'consumption',  i.e. maintenance. 
1.2. Decline  in output  and  its consequences 
1.2.1.  Taking  the Community  as a whole,  production 
has fallen  back  considerably  since  1973/74  though 
sectors  and countries  have  been  affected  differently.  The 
slowdown  has  been  particularly  pronounced  in the 
housing  sector  in the United  Kingdom,  France  and Italy, 
though  the public  works  sector  (civil  engineering  and 
building)  has stabilized  in France  and Italy.  By contrast, 
the housing  sector  in Germany  and  the Netherlands  has 
tended  to stabilize. 
The drop  in housing  output  affects  all EEC  countries, 
with  the  equivalent  of 400  000  dwellings  being  lost 
between  1974  and  1979,  i.e. a fall of 24 %. 
This  falling  off of production  can be attributed  primarily 
to: 
— the end in the last few years,  of the period  of post-war 
reconstruction  and  rapid  urban  development, 
— inflation,  which  has  eroded  the value  of short-term 
savings  and  led to a rise in interest  rates, 
— the restrictive  impact  on investment  of the monetary 
and fiscal  policies  pursued  in most  Member  States  -
low-cost  housing  and  public-sector  infrastructure 
schemes  being  the sectors  most  affected, 
10. 9. 81 Official  Journal  of the European  Communities No C 230/55 
— there  is not so much  building  land  on the market,  and 
there  has been  a concomitant  rise  in building-land 
prices. 
1.2.2.  'Stop-go'  policies  and  changes  in market 
structures  have  aggravated  the effects  of this  decline 
on the construction  industry.  The  decline  in activity 
has led to the disappearance  of endless  numbers  of 
firms  and construction  teams  have  been  broken  up. 
Employment  has been  particularly  hard  hit (500  000 
jobs axed  since  1-974).  Firms  have  had  to adjust  to 
new markets  requiring  a more  highly  skilled  labour 
force,  and the problems  of vocational  training  have 
become  more  acute  (lack  of skilled  workers). 
Firms  have  been  slow  to assimilate  new  building 
technologies  and have  also  been  too slow  in satisfying 
people's  demands  for a better  quality  of life. 
1.2.3.  Construction  has  become  much  more 
expensive  recently.  This  is due to the rising  cost  of 
land,  but the increase  in the cost  of building  work  is 
also a factor.  A major  cause  of this  rise in building 
costs  has been  the disruptive  effects  on production  of 
'stop-go'  policies. 
1.2.4.  The  five  years  between  1980  and 1985  will 
probably  continue  to witness  structural  changes  in the 
housing  market:  more  emphasis  on maintenance  and 
home-improvement  schemes  (including  the 
restoration  of the national  heritage),  energy-saving 
projects,  preference  for owner-occupied  dwellings, 
etc. 
The construction  sector  will  also  need  to take  into 
consideration  the  new  requirements  of European 
society  (improvements  in the quality  of life). 
However,  if the present  situation  continues  and  no 
measures  are taken  to satisfy  requirements  (better 
living  conditions  and  public-sector  infrastructure 
projects),  there  are likely  to be bottlenecks  and serious 
economic  and social  tensions. 
1.3. The  importance  of the construction  sector  in 
the economy:  the case  for an energetic  policy  on the 
human  environment 
1.3.1.  Construction  ranks  first  among  industries  of 
the European  Economic  Community  in terms  of 
volume: 
— the construction  industry  accounts  for approximately 
8 % of total  added  value:  it provides  work  for more 
than six million  workers.  If one includes  construction 
experts  in public-supply  contract  award  offices,  as 
well as those  working  for  architects  and  civil engineering  consultants,  then  more  than  seven  million 
workers  are directly  involved  in construction  work  in 
some  form  or other; 
— if one  takes  into  consideration  the whole  chain  of 
construction  from  beginning  to end  - and  that 
includes  supply  of materials,  products,  equipment 
and the provision  of specialized  services  - then  the 
industry  as a whole  provides  13 % of the  gross 
domestic  product. 
1.3.2.  The  construction  industry  has certain  features 
which  are of particular  benefit  to the economy  as a 
whole: 
— employment:  the construction  industry  is not capital 
intensive  and employs  about  30 % more  people  than 
any other  branch  of the economy  with  an equivalent 
output.  This  is true  of the construction  industry  a 
whole  but it is even  more  true  of the housing  sector, 
renovation  work,  and  energy-saving  schemes; 
— balance  of trade:  the  building  industry  and  civil 
engineering  consume  few  imports; 
— energy  saving:  the shift  towards  energy-saving  designs 
is of prime  importance; 
— finally,  we must  remember  that  the  construction 
industry  is also very  important  from  the point  of view 
of the economic  and social  life of the Community: 
— development  of  trade  through  improved 
community  infrastructures, 
— improvement  of the  environment  through  a 
vigorous  policy  on living  conditions  - a policy 
which  aims  at labour-intensive  growth  whilst 
ensuring  a balance  of economic  forces, 
— multiplier  effect  of employment  and  economic 
activity  on its upstream  suppliers. 
1.3.3.  Attention  should  also  be drawn  to the 
following  points: 
— the signs  of potential  housing  shortages  are 
reappearing  in some  Member  States, 
— many  Europeans  still  live  in inadequate  housing, 
which  does  not  even  meet  health  and  safety 
requirements, 
— many  infrastructures  still require  modernization, 
— industrial  reconstruction  and  factory  modernization 
schemes  need  to be carried  out, 
— a great  deal  of work  still remains  to be done  to save, 
restore  and modernize  urban  dwellings  that no longer 
meet  modern  society's  needs, 
— reconstruction  of the 250 000  dwellings  destroyed  by 
earthquake  in the Italian  Mezzogiorno  and Greece  in 
No C 230/56 Official  Journal  of the European  Communities 10. 9. 81 
1980  and  1981  will  mean  work  not only  for Italian 
and Greek  firms  but also  for firms  from  the other 
Member  States  of the Community, 
— enlargement  of the Community  will  require  heavy 
transport  infrastructure  investment  - hence  a great 
deal of work  for the construction  sector. 
1.3.4.  These  are all reasons  why  the problems  of the 
construction  industry  should  be tackled  at Community 
level. 
1.4. Achievements  of the Community 
1.4.1.  The  construction  industry  has so far remained 
a largely  national  affair  although  some  measures  have 
already  been  adopted  at Community  level,  notably  the 
Directives  opening  up tendering  for  public  supply 
contracts  (though  still inadequately  implemented)  and the 
Draft  Directive  on the harmonization  of construction 
materials  and  products  (not  yet  adopted  by  the 
Council). 
The Committee  would  stress  the importance  which  it 
attaches  to the Council's  rapid  adoption  of this Directive 
in view  of the amendments  proposed  by the Commission 
on 6 September  1979  and approved  by the Committee  in 
its opinion  on the problems  of trade  barriers  and  the 
alignment  of laws  in this  area  (1). The  adoption  of this 
Directive  is vital  for  further  harmonization  in this 
sector. 
1.4.2.  According  to the  Commission,  indirect 
Community  action  should  also  be taken  into  account 
since  some  EEC  subsidies  and  loans  also  cover 
construction  work  to some  extent.  This  is the case  with 
subsidies  provided  under  the ERDF  (European  Regional 
Development  Fund)  and EAGGF  (European  Agricultural 
Guidance  and Guarantee  Fund)  and loans  granted  by the 
ECSC,  Euratom,  NCI  (New  Community  Instrument)  and 
EIB (European  Investment  Bank). 
In 1979  these  various  forms  of aid came  to 4 840  million 
units  of account,  i.e.  2*3%  of GFCF  in the  EEC 
construction  industry  (208  600  million  units  of 
account). 
Naturally  only  part  of such  aid has a direct  effect  on the 
construction  industry.  According  to the Commission  this 
comes  to 2 000  million  units  of account,  i.e. about  1 % of 
gross  fixed  investment  in building  and civil  engineering 
and 15 % of the sums  committed  by the Commission. 
1.4.3.  Because  of the uncertainty  surrounding  these 
estimated  figures,  it is advisable  not  to jump  to 
conclusions  and to study  the question  in greater  depth. 
(>) OJ No C 72, 24. 3. 1980,  p. 8. Moreover,  the spin-off  effects  on construction  have  not 
been  studied.  It would  be interesting  to compare 
appropriations  committed  by the Commission  with  those 
committed  by the Member  States.  It would  also  be useful 
to calculate  the percentage  by which  EEC  funds  would 
have  to be increased  to achieve  a 'take-off  situation  in the 
Member  States. 
One cannot  say that  this  aid stems  from  a genuine  EEC 
policy  for the construction  industry  - and  even  less from 
a housing  policy  since  only  an infinitely  small  proportion 
of the indirect  aid mentioned  above  goes  on housing  (less 
than 2 % according  to the Commission). 
2. Possible  Community  action 
2.1. Starting  points 
2.1.1.  In  order  to assess  clearly  the pros  and cons  of 
various  possible  lines  of action,  the Community  needs  to 
be able  to compare  the policies  which  Member  States  have 
adopted  in the past,  are pursuing  in the present  and 
envisage  for the future.  Such  comparisons  would  have  to 
be as accurate  as possible.  The primary  need  is to promote 
those  studies  and analyses  most  needed  if the EEC  is to 
have  a genuine  Community  policy  on the construction 
industry. 
2.1.2.  It  would  be premature  to envisage  the creation 
of a European  technical  institute  for  construction 
similar  to the one that  exists  for example  in Holland.  It 
would,  however,  be necessary  to coordinate  the activities 
of national  construction  industry  organizations.  The only 
body  in a position  to be able  to do this is the Commission. 
Adequate  funds  should  therefore  be made  available  for 
such a purpose.  National  governments  should  also 
cooperate  more  within  the  Community  in order  to 
exchange  and  compare  technical,  economic  and  social 
data and  research  findings. 
2.1.3.  There  should  be regular  Community-level 
consultations  between  representatives  of employers  and 
workers  in order  to examine  the  situation  in the 
construction  industry  and look  at the measures  that  can 
be taken  to ensure  its development.  The  Committee  is 
willing  to help  ensure  that  this  idea  leaves  the drawing 
board  and  is accordingly  prepared  to make  an annual 
assessment  of the situation  in the construction  industry 
and take  stock  of the extent  to which  measures  proposed 
in this opinion  have  been  implemented. 
2.1.4.  The  Committee  feels  that  it is necessary  to 
follow  up the discussions  between  the Commission  and 
representatives  of the  construction  industries  of the 
Member  States  begun  at the symposium  in September 
1978. 
10. 9. 81 Official  Journal  of the European  Communities No C 230/57 
The Committee  reiterates  its request  made  at the 
symposium  organized  by the Commission  and the ESC  in 
September  1980,  namely  that  a high-level  Commission 
negotiator  be appointed  to hold  consultations  with 
representatives  of the construction  industry  and its labour 
force. 
2.1.5.  Such  consultations  should  be followed  up by 
the submission  of an action  programme  to the Council  of 
Ministers.  The  Council  should  set  up a specialist 
committee  comprising  representatives  of the governments 
and administrations  of the Member  States  to study  and 
implement  this  programme. 
2.2. Financing 
2.2.1.  A  distinction  has to be made  between  genuine 
Community  financing  and  measures  to reform  and 
harmonize  national  financing  systems. 
2.2.2.  Community  financial  instruments  include: 
— funds  for structural  purposes  (Guidance  Section  of the 
EAGGF;  Social  Fund,  Regional  Fund), 
— finances  available  under  the ECSC, 
— the European  Investment  Bank  (EIB)  which  finances 
such things  as industrial  and  mining  buildings  and 
plant,  transport  infrastructure,  telecommunications 
infrastructure,  production  infrastructure  and energy 
transportation  infrastructure, 
— the New  Community  Instrument  (NCI)  based  on the 
Council  Regulation  of 16 October  1978  (Ortoli 
facility)  with  borrowing/loan  mechanisms;  these 
mechanisms  make  it possible  for 100 million  EUA  to 
be poured  into  house-building. 
2.2.3.  The  Committee  supports  the Commission's 
efforts  to secure  a better  balance  of the Community's 
budget  so that a greater  proportion  of 'own  resources'  can 
be used  to help  the construction  sector,  particularly 
housing. needs,  largely  because  of inflation.  Economic  policies 
have  encouraged  consumption  rather  than  savings  and 
this, as we  all know,  has  had  adverse  economic 
consequences  (inflation,  high  interest  rates,  etc.). 
2.2.6.  To  ensure  more  continuity  in the  market, 
consultations  between  governments  and  specialized 
financing  bodies  in the Member  States  will  have  to be 
organized.  The  activities  of the latter  have  hitherto  been 
confined  to national  matters.  The  aim  of such 
consultations  would  be to: 
— encourage  savings  by protecting  purchasing  power, 
and by directing  savings  into  specific  financing 
networks  so as to cushion  the effects  of cyclical 
fluctuations  on the construction  sector; 
— progressively  implement  freedom  of movement  in the 
area of housing  loans.  In this  connection,  the 
Commission  is called  upon,  through  the coordination 
of national  legislation,  to give  priority  to tackling 
freedom  of establishment  and  freedom  to provide 
services  for financial  institutions  so that  particularly 
successful  schemes  for the financing  of building  can 
operate  throughout  the Community; 
— explore  and examine  all new  forms  of financing  which 
might  meet  current  needs  in the construction  sector 
(collective  real-estate  investment  fund,  life insurance 
for house  purchasers,  etc.); 
— issue  Community  loans  in European  units  of 
account. 
2.2.7.  The  EEC  should  become  a centre  for the 
exchange  of information  and  consultations  between 
national  institutions,  with  a view  to revitalizing  the 
construction  sector.  Generally  speaking,  the Community 
should  induce  Member  States  to pursue  an economic 
policy  that  safeguards  activity  in the construction  sector, 
inter  alia by ensuring  as continuous  a flow  as possible  of 
private  and  public-sector  orders  (for  instance  by a 
long-term  programme  for the construction  of subsidized 
housing). 
2.2.4.  A  transport  infrastructure  policy  of 
Community  interest,  and an industrial  policy  would  be of 
particular  interest  to the public  works'  sector  and would 
be a way  of supporting  the EIB and ERDF,  which  already 
provide  assistance  for regional  infrastructure  schemes. 
To achieve  this aim  the financial  regulation  on support 
for the relevant  programmes  should  be implemented 
rapidly. 
2.2.5.  National  financing  mechanisms  in the housing 
sector  are out of touch  with  national  economic  and social 2.3. Opening  up the market  - alignment 
2.3.1.  As  a general  principle,  the  Committee  has 
always  attached  the greatest  importance  to eliminating 
obstacles  to the  circulation  of goods  within  the 
Community.  It has strongly  backed  measures  to this end 
from  the very  outset  and considers  that action  to open  up 
the market  and  eliminate  technical  barriers  is the 
cornerstone  of a genuine  construction  policy. 
No C 230/58 Official  Journal  of the European  Communities 10. 9. 81 
Alignment  should  be designed  not only  to facilitate  free 
circulation  within  the Community  but also  to further 
exports,  which  are  more  essential  than  ever.  Many 
Community  exporters  are handicapped  by the absence  of 
uniform  Community  rules. 
2.3.2.  Differences  between  regulations  and standards 
hamper  trade.  Such  differences  must  therefore  be phased 
out gradually  with  due  allowance  made  for the variety 
and complexity  of the present  situation. 
Initially,  optional  alignment  could  be carried  out  in 
certain  cases  and  the Community  could  specify  aims 
without  laying  down  how  they  are to be achieved. 
2.3.3.  Standards  should  be aligned  on the basis  of the 
papers  which  have  been  issued  by technical  and scientific 
bodies  and by international  standards  institutes  (with  the 
CEN  playing  a coordination  role).  The  Commission 
could  instruct  these  bodies  (or some  of them)  to carry  out 
specific  tasks. 
In a number  of Member  States  consultations  are already 
held between  specialists  responsible  for relations  with 
international  institutes  such  as the ISO  (International 
Standards  Organization)  and  other  bodies  such  as the 
International  Committee  on  Research  Studies  and 
Documentation  in the Building  Industry  (CBI).  These 
consultations  should  be put  on a broader  basis  and 
intensified. 
2.3.4.  Alignment  will  have  to be selective  and  in 
accordance  with  certain  priorities.  For instance,  before 
common  design  and  building  standards  are laid  down, 
thought  should  be given  to aligning  the requirements  to be 
met by building  materials  and components,  as well  as the 
design  loads  of structures  (particularly  with  regard  to 
resistence  to seismic  shocks).  In this connection,  it is vital 
to harmonize  also  the test specifications  for materials  and 
components;  mutual  recognition  of the tests  carried  out 
by the test stations  of the various  Member  States  would  be 
a first  step  in this  direction. 
2.3.5.  Administrative  and  legal  barriers  within  the 
Community  should  be eliminated  by  the  gradual 
alignment  of rules  on building  structures  (fire  hazards, 
safety,  noise  transmission,  energy  conservation, 
environment,  resistance  to seismic  shocks).  A start  has 
been  made  in some  areas. 
2.3.6.  In  the  future  there  are likely  to be supply 
problems  with  certain  types  of materials  that  cannot  be freely  used  because  of administrative  measures  and 
environmental  constraints. 
The EEC  should  examine  how  far action  can be taken  in 
this field  and  should  encourage  the use of traditional 
materials  (gypsum,  cement,  lime,  gravel,  etc.)  freely 
available  in Europe  itself.  This  would  help  keep  down 
imports  and  so improve  the trade  balance.  Among  the 
materials  available  in Europe,  preference  should  be given 
to those  best  suited  to meeting  energy-saving  and 
conservation  requirements,  satisfying  fire  protection 
standards  and  improving  the  quality  of life.  The 
qualifications  and work  possibilities  of the labour  force 
should  also  be taken  into  consideration. 
2.3.7.  There  should  be close  consultations  on the 
above  points  with  the social  and  occupational  groups 
concerned.  Draft  Decisions  should,  at all events,  be 
referred  to the Committee. 
2.4. Keeping  costs  and  prices  under  control 
2.4.1.  In  recent  years  house  prices  have  soared  in most 
Member  States,  and buyers  are getting  much  less for their 
money.  Steps  should  be taken  to counteract  this  trend. 
The attack  could  be on two  fronts:  real-estate  policy  and 
streamlined  construction. 
2.4.2.  The  tax and other  laws  on building  land  should 
be reviewed  in a bid to increase  supply.  The  Member 
States  should  consult  each  other  and  it might  prove 
advisable  to draw  up Community  guidelines. 
2.4.3.  Open  industrialization  using  compatible 
components  is a fact  of life  in most  industrialized 
countries.  This  technique  should  provide  opportunities 
for better  cost  control.  Here,  the Community  could: 
— encourage  the  introduction  in Member  States  of 
standard  agreements  that lay down  common  rules  for 
modular  and  dimensional  coordination,  etc., 
— ensure  implementation  of the outline  Directive  on 
products  used  in the construction  sector, 
— organize  competitions  afld  schemes, 
— provide  financial  support  for pilot  programmes, 
— launch  research  into  specific  problems. 
10. 9. 81 Official  Journal  of the European  Communities No C 230/59 
2.5. Research 
2.5.1.  Research  can do much  to improve  the quality  of 
life and  boost  the  level  of economic  activity  in the 
construction  sector.  It is also  one of the means  by which 
the Community  can  cope  with  new  competition  from 
countries  in the  throes  of industrialization.  Finally, 
Community-level  research,  concentrated  on carefully 
selected  targets,  can  ensure  substantial  economic, 
technological  and  social  progress. 
2.5.2.  There  is hardly  any Community-level  research 
at the  moment,  except  on raw  materials  (timber), 
demolition  and  energy.  The  EEC  does  not have  the 
money  to fund  a major  research  drive  but a number  of 
programmes  could  be launched  or developed.  It is also 
necessary  to coordinate  national  research  programmes 
and disseminate  their  findings. 
2.5.3.  Community  research  programmes  could  give 
priority,  for instance,  to the renovation  and restoration  of 
old buildings,  energy  conservation,  information,  the 
introduction  of data-processing,  and  the effects  which 
technological  development  in the construction  sector 
could  have  on other  industries  (chemicals,  steel,  etc.). 
2.5.4.  Taking  into  account  indirect  costs  such  as 
technical  diagnoses,  etc.,  it is sometimes  cheaper  to 
construct  new  buildings  than  to improve  and restore  old 
ones.  Nor  do out-of-date  regulations  help  matters.  This 
situation  could  be remedied  by using  industrially 
produced  components  and  by  developing  suitable 
technology,  materials  and  equipment.  There  are many 
possibilities  for innovation  in these  two  areas. 
2.5.5.  Energy  conservation  should  be furthered  by 
developing  new  insulation  and alternative-energy  systems 
(solar  panels,  heat  pumps,  heat  generators,  etc.).  These 
could  contribute  to industrial  redevelopment  within  the 
Community,  and  to new  export  lines. 
2.5.6.  The  fact  that  several  General  Directorates  in 
the Commission  (DG  V, DG XII,  DG XVII),  as well  as 
bodies  such  as the JRC  (Joint  Research  Centre)  and ECPS 
(Environment  and  Consumer  Protection  Service)  are 
operating  simultaneously  in this field,  makes  it difficult  to 
carry  out a lucid  analysis  of the situation  and  act in a 
consistent  manner.  Action  already  begun  must 
nevertheless  be both  continued  and stepped  up and there 
is a need  for improved  coordination  between  the different 
types  of action. The effect  of certain  town-planning  regulations  on 
technological  developments  should  likewise  be examined 
since  most  of these  regulations  were  drawn  up at a time 
when  technologies  were  totally  different  (for example  it 
was not possible  to foresee  the necessary  increase  in the 
number  of solar  panels  on house  roofs). 
It is all the more  necessary  to take  rapid  action  in each  of 
these  areas  because  European  producers  will  soon  find 
themselves  disadvantaged  and  outflanked  in their  own 
markets  by non-EEC  competitors  unless  there  is a huge 
Community  market  in which  to develop  new  techniques 
and products. 
2.5.7.  Information  networks  within  the construction 
sector  are already  relatively  advanced  in the Member 
States  and are beginning  to be extended  to Community 
level  (Euronet,  Euro  Chronos,  Diane,  etc.).  This  trend 
must  be continued  and  developed  further  both  in the 
technical  and other  fields  (economic,  fiscal,  etc.). 
These  networks  should  be  brought  under  the 
Commission's  data-processing  programme  currently 
being  drawn  up. Every  possible  consideration,  however, 
will have  to be given  to the fact  that  the construction 
sector  has  many  specific  features,  including  a large 
number  of small  and medium  enterprises  whose  access  to 
new computing  sources  will have  to be facilitated  as much 
as possible  (both  with  regard  to initial  investment  as well 
as know-how  in using  the networks). 
2.6. Action  in the social  sphere 
2.6.1.  A  Community  construction  policy  should  have 
a stabilizing  or expansionary  impact  on building  and on 
employment.  Such  a policy  should  thus  be part  of the 
Community's  overall  strategy  on the crucial  problem  of 
unemployment,  particularly  youth  unemployment. 
Young  people  are tending  to turn  their  backs  on the 
construction  sector  so special  measures  - vocational 
training  in new  technologies  and  the improvement  of 
working  conditions  - should  be taken  to reverse  the 
trend. 
2.6.2.  A  Community  construction  policy  should  also 
aim to satisfy  genuine  social  needs.  In this respect  priority 
should  be given  to the  construction  in Europe  of 
subsidized,  low-cost  housing  - an area  where  there  are 
No C 230/60 Official  Journal  of the European  Communities 10. 9. 81 
big shortages.  Such  a policy  would  (a) boost  employment 
in the construction  industry  and (b) help  towards  solving 
the housing  problem  in Europe. 
At the same  time  action  should  be taken  to bring  about  an 
improvement  in general  working  conditions  via an assault 
on the specific  problems  of vocational  training,  safety  and 
health. 
2.6.3.  Efforts  should  be made  to introduce  systematic 
basic  vocational  training  in the EEC  in accordance  with  a 
model  applicable  to all Member  States. 
The development  of  new  materials,  equipment, 
technology  and  markets  also  calls  for  a more 
highly-skilled  labour  force  which  can permanently  adapt 
to changing  job requirements. 
The restoration  of the housing  stock  and  renovation  of 
ancient  towns,  for example,  calls  for people  with  specific 
skills  or many-sided  talents.  People  with  the latter  are 
relatively  hard  to come  by. 
This explains  why  restoration  schemes  in some  European 
towns  have  been  backed  up by relevant  training 
programmes. 
2.6.4.  To  help  further  reduce  the  number  of 
occupational  diseases  and  accidents  at work,  the 
Community  should  see it as its duty  to improve  safety 
conditions.  The  alignment  of regulations  on specific 
materials  is one of the fields  where  the Community  could 
make  its mark  in this respect. 
2.6.5.  Illicit  double-jobbing  has expanded  greatly  in 
the various  Member  States  and  has  become  a general 
problem;  the  problem  is particularly  acute  in the 
construction  sector. 
To encourage  growth  and  employment  in the 
Community,  it is necessary  to wage  a more  vigorous 
campaign  against  illicit  double-jobbing.  This  will call for 
some  Community-level  alignment  of existing  and future 
regulations. 
Statutory  and  administrative  provisions  should  be 
adopted  at Community  level  to combat  malpractices  and 
make  possible  systematic  supervision  and  penalties  for 
the illegal  supply  of labour. 
Statutory  provisions  regulating  liability  for failure  to 
hand  over  taxes  and social  security  premiums  should  be 
adopted  at Community  level.  In order  to combat  this 
malpractice  there  should  be effective  supervision  and 
penalties. 
2.6.6.  The  Community  should  also  lobby  the 
International  Labour  Organization  to persuade  it to put the whole  question  of the employment  by EEC  firms  of 
European  workers  in countries  outside  the EEC  on the 
agenda  of its industrial  committees  for construction. 
Finally,  the Community  should  do its utmost  to ensure 
that labour  clauses  on  minimum  standards  are 
incorporated  into  bilateral  or multilateral  agreements 
concluded  with  non-member  countries  (see  previous 
opinions  of the  Committee  on this  matter).  The 
Community  should  also  encourage  the  two  sides  of 
industry  to conclude  collective  agreements  covering 
expatriated  workers. 
2.7. External  trade 
2.7.1.  Community-based  construction  firms  have  to 
compete  in foreign  markets  with  newcomers  to the 
market  (from  South  America,  South-East  Asia, 
Eastern-bloc  countries),  where  costs  are not influenced  by 
the free  play  of the market  or else  are held  down  by low 
wages.  There  is also  competition  from  large  American 
firms  offering  integrated  projects. 
The Community  cannot  survive  unless  it increases  its 
exports,  and the housing  and infrastructure  needs  of the 
developing  countries  are immense.  The  Community  must 
therefore  act if European  firms  are to hold  their  own  - let 
alone  improve  their  position  in overseas  markets. 
2.7.2.  The  full political  and financial  strength  of the 
Community  should  be used  wherever  possible  to boost 
European  contract  work  abroad,  especially  in the 
developing  countries. 
2.7.3.  - Steps  should  be taken  to further  cooperation 
abroad  by Community-based  firms  in order  to help  them 
to compete  with  their  rivals  from  non-member  countries. 
Community  measures  could  be  taken  to  align 
credit-insurance  schemes,  to ensure  closer  cooperation 
between  Community  firms  running  these  schemes 
(perhaps  going  so far as a limited  pooling  of risks),  and to 
set up an information  office  (to signal  international 
business  opportunities  and disseminate  market  data).  In 
the longer  term,  a European  bank  for  loans  to the 
construction  sector  could  be set up. 
2.7.4.  Consideration  should  be given  to the possibility 
of the recognition  at Community  level  of 'Joint  Venture 
Contracts',  a form  of contract  allowing  the formation  of 
consortia  by firms  from  several  countries  for specific 
projects. 
2.7.5.  A  first  step towards  the establishment  of such  a 
mechanism  could  be to arrange  for  a Community 
financial  institute  (e.g.  the European  Investment  Bank)  to 
take a given  share  in export  credit-insurance  contracts  for 
10. 9. 81 Official  Journal  of the European  Communities  No  C 230/61 
construction  work  outside  the Community  by Member 
State  firms. 
This  participation  would  have  to be 'automatic',  though 
each  export  credit-insurance  body  would  be allowed  to 
retain  full  independence. 
As the Member  States  already  cover  a high  proportion  of 
the risks  insured  by these  bodies,  the best  course  would  be 
for each  Member  State  to hand  over  a proportion  of its 
participation  to the Community  institution. 
Such  reform  would  have  the advantage  of providing  these 
contracts  with  a 'Community  label'  and  creating 
European  solidarity  in foreign  construction  markets, even  if the rate  of Community  participation  is small  to 
begin  with. 
2.7.6.  Standard  clauses  would  have  to be introduced 
and these  would  go to make  up a Community  reference 
system  covering  initially,  and  progressively,  terms  and 
currencies  of payment,  procedures  for adjusting  prices 
and disputes. 
2.7.7.  If  Community  technical  rules  were  introduced, 
they would  most  likely  facilitate  the task  of export  firms. 
Ability  to offer  potential  clients  a coherent  set of tested 
technical  specifications  greatly  strengthens  the ability  of 
Community-based  firms  to compete  with  rivals  from  the 
other  major  industrial  zones  of the world. 
Done  at Brussels,  3 July  1981. 
The Chairman 
of the 
Economic  and  Social  Committee 
Tomas  ROSEINGRAVE