COMMISSION STAFF WORKING DOCUMENT Accompanying the document COMMUNICATION FROM THE COMMISSION “Strategy for the sustainable competitiveness of the construction sector and its enterprises”
Date: 2012-07-31
Institutions: European Commission
Subjects: building industry, building insulation, competitiveness, domestic market, innovation, sustainable development, urban renewal

EUROPEAN COMMISSION 

Brussels, 31.7.2012  
SWD(2012) 236 final 

COMMISSION STAFF WORKING DOCUMENT 
Accompanying the document 

COMMUNICATION FROM THE COMMISSION 

“Strategy for the sustainable competitiveness of the construction sector and its 
enterprises” 

{COM(2012) 433 final} 

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COMMISSION STAFF WORKING DOCUMENT 
Accompanying the document 

COMMUNICATION FROM THE COMMISSION 

“Strategy for the sustainable competitiveness of the construction sector and its 
enterprises” 

1. INTRODUCTION 

The  scope  of  this  Staff  Working  Document  (SWD)  is  to  strengthen  the  factual  basis 
underpinning  the  Communication  ‘Strategy  for  the  sustainable  competitiveness  of  the 
construction sector and its enterprises’. 

It provides information on the structure and the short-term trends of the entire ‘value chain’, 
including  on-site  construction  enterprises  (construction  of  buildings,  infrastructure  and 
specialised  construction  activities),  the  manufacturing  industry  (producers  and  suppliers  of 
materials and construction products) and professional services (consulting firms, architecture 
and engineering, etc.). 

‘Sustainable  competitiveness’  is  understood  as  the  ability  of  businesses  in  the  construction 
industry  to  achieve  and  maintain  levels  of  economic  performance  required  by  the  markets 
while  coping  with  sustainable  development  goals.  In  other  words,  their  economic 
performance  should  also  contribute  to  the  achievement  of  objectives  in  terms  of  quality  of 
life,  social  welfare,  resource  efficiency  and  environmental  protection.  Hence,  the  SWD  will 
also provide information about the environmental performance of construction enterprises. 

2. INDUSTRY CHARACTERISTICS 

The construction industry is a major economic operator. Overall, it generates almost 10 % of 
GDP, provides 20 million direct jobs, mainly in micro and small enterprises, and contributes 
to  more  than  50 %  in  fixed  capital  formation  of  all  economic  agents.  Due  to  its  economic 
importance, the performance of the construction sector can have a significant influence on the 
whole economy. 

Buildings account for 42 %1 of final energy consumption and 35 % of  the  CO2 emissions in 
the EU-27. The manufacturing and transport of construction products is responsible for about 
10 % of final energy consumption and about 50 % of all materials extracted from earth. The 
environmental performance of buildings varies significantly from one country to another. 

The competitiveness of companies in the construction industry is therefore an important issue, 
not  only  for  employment  and  for  the  European  economy  in  general,  but  also  to  ensure  the 
sustainability of the industry. 

1 

Source: DG ENER. 

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The  range  of  different  activities  within  each  sub-sector  gives  contrasting  results  in  terms  of 
skills  and  adaptation  to  new  regulations  and  market  opportunities.  Along  the  value  chain, 
there are clearly three major sub-sectors differentiated by their structure, performance and the 
nature of the challenges they face. 

2.1 On-site construction enterprises 

This  includes  all  businesses  that  construct  buildings  and  infrastructure  (bridges,  roads, 
transportation networks, etc.) and carry out maintenance, renovation and demolition works. 

The number of direct jobs linked to this sector was 15 million in 2008, representing 7 % of 
jobs in the EU and 30 % of industrial employment. Corporate concentration remains relatively 
low  and  a  significant  portion  of  the  production  value  comes  from  micro-enterprises2.  Civil 
engineering works account for 22 % of total construction work, i.e. €
 258 billion and about 3 
million operatives. 

As on-site construction is a major consumer of intermediate products and services3, its growth 
has  a  significant  impact  on  the  development  of  other  industry  sectors  (raw  materials, 
chemicals, electric and electronic equipment, etc.). 

Output  has  slowed  down,  especially  in  the  construction  and  renovation  of  buildings.  The 
production index has fallen by 19%, excluding seasonal variations, between January 2008 and 
November  2011  for  all  EU-274.  Infrastructure  work  has  also  fallen,  although  to  a  lesser 
extent,  as  the  index  of  production  fell  7 %  over  the  period  between  January  2008  and 
November  2011.  Overall,  the  sector  lost  13 %  of  its  workforce  between  2008  and  20105. 
Annex 1 gives more details on the impact of the crisis and the response of Member States. 

A major share of on-site construction work in the EU, especially on infrastructure, arises from 
public procurement. Public procurement projects are often complex and extensive in nature 
and size, which may pose difficult challenges for SMEs. 

To help implement the ‘Small Business Act’, the Code of Best Practices on SMEs encourages 
Member States to develop favourable conditions for subcontracting and partnership between 
SMEs (‘consortium’) within the framework of public procurement. Given the importance of 
public works for the construction activity, public procurement policy should be exemplary, a 
model of good practice for all fields. 

As announced in the recast of Energy Performance of Buildings Directive6, the introduction 
of Nearly Zero Energy Buildings (NZEB)7 is going to be a major challenge for the building 

2 

3 

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6 

7 

Less  than  10  employees  —  in  2007,  micro  enterprises  represented  92 %  of  the  total  number  of 
enterprises in on-site construction and accounted for 42 % of all persons employed and 31 % of the total 
turnover of the sector. 
In 2007, on-site construction consumed €
 750 billion of intermediate products and services from sectors 
other than construction (NACE section F), corresponding to nearly 44 % of the subsector’s turnover — 
Source:  ECORYS,  study  on  the  sustainable  competitiveness  of  the  construction  sector,  client  EC 
(2010). 
Source: Eurostat. 
Source: Eurostat. 
Directive  2010/31/EU  of  the  European  Parliament  and  of  the  Council  of  19 May  2010  on  the  energy 
performance of buildings. 
For more details on the relevant provisions, please see Directive 2010/31/EU, Articles 2(2) and 9.  

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industry  in  the  next  few  years.  The  market  has  several  years  to  adapt,  but  it  needs  to  be 
supported  by  all  market  actors  ranging  from  public  bodies  (which  need  to  implement  two 
years  in  advance),  construction  companies,  designers,  developers,  etc.  It  will  also  require 
adaptation in areas such as financing structure, procurement, education and marketing. 

On-site construction will increasingly face the need for skilled labour. Some surveys show 
that more than 7 enterprises out of 10 have already experienced difficulties in recruiting for 
several years. The huge swathe of skilled people due to retire by 20208, representing over two 
thirds of jobs in construction, industry and transportation, will also need to be replaced. The 
chronic shortage of skilled labour can be explained by the low attractiveness of the sector for 
young  people  and  by  the  growing  need  for  skills  corresponding  to  specific  qualifications, 
which education, training and the employment market often do not satisfy. The transition to a 
resource  efficient  and  low  carbon  economy  will  also  bring  major  structural  changes  in  the 
construction  sector,  which  will  have  to  adapt  and  anticipate  the  needs  for  skills  and 
competences  in  these  areas.  This  is  especially  the  case  regarding  preparations  of  the  labour 
force to build Nearly Zero Energy Buildings, both new buildings and renovation. 

The  proportion  of  on-site  construction  workers  who  have  completed  higher  education  has 
increased  over  time  but  at  a  rather  slow  annual  rate.  This  constitutes  an  obstacle  to  higher 
productivity and a better uptake of innovative technologies and business models. Moreover, 
due to disparities, in particular in the organisation of compulsory education systems, there are 
significant differences between the EU-27 countries in the level of basic skills of the workers 
recruited. These disparities, and the lack of a clear definition of basic requirements for jobs in 
on-site construction, pose a major obstacle to the mobility of skilled labour, as do other issues 
related to working conditions and wages. 

These  obstacles  are  reflected  in  the  insufficient  use  of  Information  and  Communication 
Technology (ICT) in the sector. Although the proportion of on-site construction enterprises 
with access to broadband internet has grown rapidly, the electronic management of orders and 
purchases and/or the direct exchange of information with suppliers and customers have grown 
more  slowly.  Only  about  one  third  of  companies  with  more  than  ten  employees  use  ICT  to 
integrate its  internal business processes9 and barely one tenth uses ICT to integrate external 
processes10. In most micro-enterprises, ICT use is almost non-existent. 

Spending on research and development (R & D) remains very low (0.05 % of turnover in 
2007).  This  can  be  explained  by  the  fact  that  the  main  interest  of  on-site  construction 
enterprises is to integrate available external technological developments into their activities. 

The  number  of  ‘low-energy’  buildings  is  growing  but  has  not  yet  reached  a  critical  mass. 
Efforts to improve energy efficiency and integrate renewable energy sources are progressing 
slowly, for existing buildings and for new constructions. The initial extra costs of constructing 
a passive building vary between 15 to 20 % and seem to have a dissuasive effect on demand. 

Regarding  extensive  renovations  of  buildings,  the  energy  savings  achieved  are  often 
relatively modest since investors often do not clearly perceive the added  value of  improved 
energy efficiency in the overall profitability of investment, especially for rental income. The 

8 
9 
10 

CEDEFOP ‘Skills, demand and Supply’ 2010 p. 93 http://www.cedefop.europa.eu/en/Files/3052_en.pdf 
E.g. electronic management of orders and purchases. 
E.g. exchange of information with suppliers and customers. 

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‘Strategy for a competitive, sustainable and secure energy’11 , the ‘Roadmap for moving to a 
competitive low-carbon economy in 2050’12 and the ‘Energy Efficiency Action Plan 2011’13 
therefore focus on the need for more action on buildings, especially on renovation. 

Transport  infrastructure  has  an  enormous  environmental  impact,  consumes  substantial 
volumes  of  energy  and  raw  materials  and  generates  substantial  volumes  of  waste. 
Infrastructure networks should bring a major contribution to making Europe more sustainable, 
by reducing the environmental impact, consumption of land and natural resources and energy 
and by making optimal use of scarce financial resources. In the urban environment, upgrading 
and  retrofitting  infrastructure  will  help  provide  a  wide  range  of  services,  improve 
environmental  and  security  issues,  reduce  disruption  to  traffic  and  drive  down  maintenance 
and reparation costs. 

Finally,  competition  in  the  EU  markets  has  improved  through  the  application  of  public 
procurement  directives  and  by  most  Member  States  adopting  the  European  design  and 
construction  standards  (Eurocodes).  However,  EU  companies  are  not  always  on  an  equal 
footing,  especially  due  to  the  social  conditions  in  which  they  operate.  Pressure  from  non-
European  companies,  which  are  often  subject  to  less  stringent  social  and  environmental 
requirements  and  sometimes  receive  state  aid,  is  also  growing  in  some  EU  markets,  in 
particular  for  infrastructure  works,  with  the  risk  that  this  puts  European  companies  in  an 
uncompetitive  position.  The  situation  on  international  markets  is  even  more  difficult. 
European businesses often face serious difficulties, both due to technical issues and due to the 
conditions of competition in some non-member countries, e.g. China, which limit the scope to 
access their markets. 

2.2 Manufacturing construction products 

In 2007, the construction products industry generated a turnover of €360 billion for an added 
 115  billion  and  employed  2.5  million  of  workers14.  The  seasonally-adjusted 
value  of  €
production index decreased by 24 % over the period from January 2008 to September 2011 for 
the entire industry in the EU-27. 

The structure of this industry varies significantly depending on the areas concerned. SMEs are 
predominant,  but  the  economic  value  of  large  enterprises  is  substantial  in  some  industries, 
such as cement or plaster. 

Beyond  cyclical  movements,  the  growth  prospects  are  closely  related  to  the  on-site 
construction  sector.  Thus,  the  effects  of  the  economic  crisis  on  buildings  and  infrastructure 
projects  were  directly  reflected  in  the  sector  of  construction  products,  which  also  faces  the 
challenges of rising costs of energy and raw materials and international trade15. 

The sector is, nevertheless, very innovative, particularly in terms of quality and performance 
of products placed on the market. 

11 
12 
13 
14 

15 

COM 2010 (639) final. 
COM 2011 (112) final. 
COM 2011 (109) final. 
Study  ECORYS  —  ‘FWC  Sector  Competitiveness  Studies  No  B1/ENTR/06/054  —  Sustainable 
Competitiveness of the construction sector’ — March 2011. 
Ibid – For more information on the impact of the crisis on this sector, see ECORYS. 

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Spending on research and development in the construction products industry increased in 
2007  to  about  0.5 %  of  turnover.  This  low  rate  (1  to  2 %)  can  be  explained  by  intensive 
manpower  requirements  compared  with  industry  in  general.  In  terms  of  patents,  however, 
EU27 companies have been frontrunners with over a half of international patent applications 
related to new processes and new products submitted to the European Patent Office in 2006. 

On-site  construction  and  the  manufacturing  of  construction  products  are  characterised  by  a 
high  consumption  of  inputs  (such  as  metallic  and  non-metallic  minerals,  chemicals  and 
wood) and the production of large quantities of waste. The construction products industry 
has sought in recent years to improve its environmental performance. Efforts have been made 
in the last decade to integrate the management of manufacturing, design of buildings and on-
site  works  to  reduce  the  amount  of  waste16.  The  industry  is  developing  more  and  more 
materials that are easier to collect and reuse and systems or ‘building solutions’ that facilitate 
the ‘deconstruction’ of the works and the re-use of materials. These efforts are in line with the 
new  basic  requirement  listed  in  the  Construction  Products  Regulation  concerning  a 
sustainable  use  of  natural  resources,  and  with  the  Raw  Materials  Initiative  (RMI),  by 
developing  best  practices  in  waste  collection  and  treatment,  especially  in  recovery/reuse  of 
valuable materials from waste, and through support for research on economic incentives for 
recycling/recovery. 

In addition to the drive to make progress in research and development, the dynamism of the 
sector is also due to the following factors: a gradual increase in competition on the internal 
market  thanks  to  implementation  of  the  Construction  Products  Directive  (CPD),  and  the 
climate,  environmental  and  energy  efficiency  objectives  requiring  continually  higher 
performance levels of buildings constructed from these products. 

However,  the  construction  products  industry  still  has  to  cope  with  a  great  diversity  of 
standards, national approval schemes and quality marks, which often artificially increase the 
costs  of  the  products  placed  on  the  market.  Implementation  of  the  Construction  Products 
Regulation, as of July 2013, should help improve this situation significantly. 

Meanwhile, the sector has gradually opened up to competition from outside the EU, exposing 
itself  to  severe  competition  with  producers  that  have  to  follow  less  stringent  social  and 
environmental regulations. 

2.3 Professional services in the construction sector 

This area is also very diverse and includes architecture and engineering as well as regulators, 
 620 billion, an added 
surveyors and project coordinators. In 2007, it generated a turnover of €
value  of  €
 300  billion  in  2007  and  employed  about  3  million  people.  Compared  to  the  two 
other areas of the construction sector discussed above, the crisis has had less of an effect on 
the  activity  of  professional  services,  although  the  production  index  for  the  period  January 
2008 to August 2011 shows stagnant activity in this sector. 

In recent years, many mergers and acquisitions have taken place in the professional services 
sector,  but  micro-enterprises  are  still  likely  to  dominate,  according  to  medium-term 
projections. 

16 

The experience relating to ‘Lean construction’ refers to this approach of integrated management.  

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The  fragmentation  of  practices,  regulations  and  cultural  traditions  at  national,  regional  and 
local  levels  limits  the  mobility  of  professionals in  this  sub-sector,  despite  EU  legislation  on 
free movement of services and the mutual recognition of professional qualifications17. 

Eurocodes,  European  standards  for  design  and  construction,  are  an  important  platform  at 
European  level  for  engineering  companies  to  access  construction  markets,  including  public 
procurement. Internationally, Eurocodes are also known to play an important role in opening 
new markets for European companies. Russia and some Asian countries, for instance Vietnam 
and Malaysia, are in the process of adopting them as tools for the design and construction of 
buildings and infrastructure. Underpinned by the right policy, Eurocodes could also play this 
role in African markets. 

Although  energy  performance  requirements  are  increasingly  taken  into  account  in  project 
design,  a  more  global  approach  encompassing  sustainable  development  requirements  is  still 
only taken in specific cases. At national level, methods for making an integrated assessment 
of  environmental  performance  and  related  certification  tools  are  beginning  to  be  applied  in 
public  procurement.  However,  these  approaches  are  not  harmonised  and  are  insufficiently 
conducive  to  innovative  solutions.  Here  too,  European  standardisation18  must  play  a  role 
accompanied,  where  appropriate,  by  concerted  efforts  to  develop  a  more  systematic  and 
harmonised framework to meet the economic, social and environmental criteria19. 

Costs resulting from failures in the construction process are relatively high; they represent a 
considerable  risk  to  professional  services  and  construction  companies.  Risk  management  is 
therefore  a  major  concern  for  professional  services.  Liability  and  insurance  policies  vary 
significantly  between  Member  States  and  are  often  associated  with  national  quality  marks, 
which  in  most  cases  is  a  major  obstacle  to  the  free  movement  of  services  on  the  internal 
market. 

2.4 Structure and trends of the sector at national level 

Annexes  2  to  4  describe  the  structure  of  the  three  sub-sectors  analysed  in  the  previous 
sections and trends in individual Member States. 

In  terms  of  size  of  enterprise,  the  three  construction  sub-sectors  all  have  a  comparatively 
high  share  of  micro-enterprises  compared  to  the  average  for  manufacturing  (NACE  D). 
Although the small size of construction enterprises typically limits their internal capabilities 
and  investment  resources,  it  can  offer  opportunities  for  faster  and  more  flexible  business 
development.  Member  States  in  southern  Europe  tend  to  have  the  largest  proportions  of 
SMEs.  Conversely,  central  and  eastern  European  countries  tend  to  have  a  higher  share  of 
large  enterprises,  although  the  trend  is  towards  increasing  shares  of  SMEs.  Market 
concentration in both the on-site construction and the manufacturing of construction products 
tends  to  be  higher  in  smaller  Member  States  than  in  larger  ones,  presumably  due  to  their 
market size and overall number of enterprises. 

17 

18 
19 

E.g.  Directive  2006/123/EC  on  services  in  the  internal  market  and  Directive  2005/36/EC  on  the 
recognition of professional qualifications, etc. 
E.g. the work of CEN TC 350. 
E.g. the SB Alliance. 

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In  terms  of  skills  and  education,  most  employees  in  on-site  construction  have  at  least  an 
upper  secondary  education.  There  is  a  significant  difference  between  the  EU1520  (61 %  of 
total  employment)  and  EU12  (84 %  of  total  employment)  averages,  which  in  part  reflects 
differences in the definition of mandatory educational systems. Annex 5 provides examples of 
the  vocational  education  and  training  systems  in  place  in  some  Member  States.  More  than 
60 %  of  employees  in  on-site  construction  in  the  southern  European  countries  only  have 
primary  or  lower  secondary  education.  Over  time,  the  share  of  employees  in  on-site 
construction with an upper and post-secondary non-tertiary education or a tertiary education 
have increased, although at a low annual rate in the EU27 from 2004-2008. 

In all three subsectors, the share of turnover represented by business expenditure on research 
and  development  is  significantly  lower  in  the  EU12  than  in  the  EU1521.  Furthermore,  in 
terms of innovation activity, there is a significant gap between enterprises in the EU15 and the 
EU12  in  all  three  subsectors22.  Innovation  activity  in  the  EU-27  appears  to  be  decreasing 
compared to 2004 levels, although this may simply reflect the initial impact of the financial 
crisis on enterprises involved in construction (note also the limited data coverage for 2004). 

In  terms  of  environmental  performance,  on-site  construction  and  manufacturing  of 
construction  products  generate  large  amounts  of  non-recyclable  waste.  In  Greece,  Romania 
and Slovenia, the shares of non-recyclable wastes are comparatively lower than in other EU 
countries,  which  is  probably  due  to  a  higher  reliance  on  more  traditional  construction 
materials and building methods. Efforts made so far to develop materials that are easier to re-
cycle  and  reuse  will  only  be  fully  reflected  in  improved  waste  statistics  in  20  or  30  years. 
Enterprises  in  manufacturing  materials  in  the  EU12  appear  to  generate  significantly  more 
waste  relative  to  output  than  enterprises  in  the  EU15.  This  difference  in  waste  efficiency 
(amount of waste generated per unit of production) may be due to differences in technology 
use driven by higher labour costs in the EU15. 

20 

21 
22 

EU-15 refers  to  the  following group  of  countries  of  the EU-27:  Austria,  Belgium,  Denmark,  Finland, 
France, Germany, Greece, Ireland, Italy, Luxemburg, the Netherlands, Portugal, Spain, Sweden, United 
Kingdom.  EU-12  refers  to  the  following  group  of  countries  of  the  EU-27:  Bulgaria,  Cyprus,  Czech 
Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia, Slovenia. 
See Eurostat Statistics on research and development. 
See Eurostat Community Innovation Survey. 

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Annex 1 

TRENDS IN ON-SITE CONSTRUCTION 

The  construction  sector  has  been  hit  particularly  hard  by  the  financial  and  economic  crisis. 
Figure  1  shows  that  the  production  index  of  on-site  construction  for  both  building  and 
infrastructure works fell by 16 % between January 2008 and November 2011 across the EU-
27. 

Figure 1: Production index in the construction sector since the crisis 

Production index in the construction sector

Euro area, seasonally adjusted series

EU27, seasonally adjusted series

Trendline

Trendline

115

110

105

100

95

90

85

80

75

2
0
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7
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2
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-
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5
8
0
0
0
2005=100

7
0
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2
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1
1

8
0
0
2
-
2
0

8
0
0
2
-
5
0

8
0
0
2
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0

8
0
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1
1

9
0
0
2
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2
0

9
0
0
2
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5
0

9
0
0
2
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8
0

9
0
0
2
-
1
1

0
1
0
2
-
2
0

0
1
0
2
-
5
0

0
1
0
2
-
8
0

0
1
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2
-
1
1

1
1
0
2
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0

1
1
0
2
-
5
0

1
1
0
2
-
8
0

1
1
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2
-
1
1

Source: Eurostat STS — News release 10/2012 – 18 January 2012. 

Activity  fell  sharply  in  building  works,  in  particular  in  the  new  residential  segment,  with  a 
decline in the production index excluding seasonal variations of 19 % between January 2008 
and November 2011 for all EU-27. Infrastructure works also experienced, although to a lesser 
extent,  a  downturn  in  activity  as  the  index  of  production  fell  7 %  over  the  period  between 
January 2008 and November 2011. 

The situation varies enormously from one country to another. When comparing the quarterly 
production indexes, number of persons employed and building permits23 over the period from 

23 

The  reference  year  is  2005  (=100).  Building  permits  refer  to  the  useful  floor  area  granted  by  the 
authorities. 

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the first quarter of 2008 up to the third quarter of 2011, the most negative trends are seen in 
Bulgaria, Cyprus, Estonia, Greece, Hungary, Ireland, Portugal, Slovakia, Slovenia and Spain. 

Figure 2: Change in the production index in on-site construction in individual Member States 

Trends in on-site-construction

40%

20%

0%

-20%

-40%

-60%

-80%

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S F
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R
F

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Production Employment

Building permits

However,  in  Austria,  Belgium,  Germany,  Luxembourg,  Poland  and  Sweden,  at  least  one 
quarterly  performance  indicator  showed  an  increase  in  activity.  Countries  with  the  highest 
decreases of the performance indexes since 2008 are those that had the highest growth rates 
up to 2008. Another reason for the different impacts of the crisis at national production levels 
could  be  the  nature  and  impact  of  planned  construction  work  as  well  as  varying  effects  of 
national stimulus packages. Still, as Figure 7 shows, the on-site construction subsectors in all 
Member States (with the notable exceptions of Germany and possibly Belgium and Poland) 
were  adversely  affected  by  the  financial  crisis  to  some  extent  or  other  (both  Germany  and 
Poland fared comparatively poorly prior to 2008, however). 

Responses to the crisis 

Several Member States have adopted or announced specific programmes to promote private 
and  public  investment  in  infrastructure  projects24.  For  example,  Germany’s  second  fiscal 
 17  billion  in  infrastructure  investment.  The  French  ‘plan  de 
programme  provides  for  €
relance’  provides  for  €
 1.9  billion  for 
housing projects. 

 4  billion  in  public  infrastructure  investment  and  €

Some Member States have also adopted or announced additional measures in direct support of 
private housing demand and supply: 

24 

The  response  of  Member  States  to  the  Recovery  plan  is  much  diversified  and  needs  a  systematic 
analysis.  A  study  ‘Lead  Market  Initiative  –  Assessing  the  impact  of  national  recovery  measures  on 
construction in the EU-25’ is ongoing and would deliver results in November 2012. 

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• 

• 

• 

• 

• 

• 

Belgium:  The  government  has  announced  reduced  VAT  rates  (6 %)  for  new 
construction works up to a value of €50 000 in 2009. 

Ireland:  Support  for  the  housing  market  —  Taxation  measures  with  an  estimated 
 180  million  or  0.1 %  of  GDP,  namely  extension  of  the  period  of  capital 
cost  of  €
allowances for newly constructed buildings in order to increase the attractiveness of 
commercial  buildings,  a  reduction  of  stamp  duty  applicable  to  non-residential 
property and an increase in mortgage interest relief for first-time homebuyers. 

Latvia: Lifted the obligatory 10 % down-payment rule when taking a mortgage loan 
(i.e. the LTV ratio was capped at 90 %) and reversed the fee increase for registering 
in the land registry. 

Netherlands:  The  guarantee  fund  for  council  housing  ‘Waarborgfonds  Sociale 
Woningbouw’ will be extended by (temporarily) increasing the maximum level of the 
guarantee in special circumstances. This enables housing corporations to (partly) take 
over projects from commercial parties and to let out houses. 

Spain: Draft bill on measures to stimulate the rental market and energy efficiency in 
buildings. Authorisation will be given to create Real Estate Investment Trusts which 
will have a favourable tax regime and whose main object will be to invest in property 
for rental purposes. The objective is to encourage the rental market in Spain. In 2008, 
through  ICO,  the  State  guarantees  for  securitising  loans  to  SMEs  were  increased 
from  1  to  3  billion  euro  to  promote  rentals.  Also,  the  ICO  guarantee  lines  for 
securitisation of mortgage loans to buy social dwelling homes were increased from 3 
to 5 billion euro. On VAT and personal income tax, there is improved tax treatment 
of  building  refurbishments  that  cost  over  25 %  more  than  the  acquisition  price  (not 
including the land), effective as of January 2008. The goal is for more projects to be 
eligible for a more neutral beneficial tax scheme, improving input VAT recovery and 
stimulating  the  construction  industry.  The  same  applies  to  the  rehabilitation  credit 
allowed for the habitual dwelling under personal income tax. 

UK: Homeowners support package of £ 1.6 billion (0.13 % of GDP), including a new 
shared equity scheme to support first-time buyers, support to vulnerable homeowners 
at  risk  of  repossession  and  a  £ 400  million  programme  to  support  social  housing 
supply. The government also decided to temporarily raise the tax-free threshold for 
the UK’s residential property transaction tax for one year from £ 125 000 to £ 175 000 
(estimated to cost around £ 600 million in foregone revenues). 

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Annex 2 

INDIVIDUAL MEMBER STATE PERFORMANCE IN ON-SITE CONSTRUCTION (NACE SECTION F) 

Figures 3 and 4 show the key performance indicators for on-site construction for each of the 
27 Member States in 2007. Figure 3 shows how enterprises in the Nordic countries, Benelux, 
Ireland  and  the  United  Kingdom  tend  to  generate  a  comparatively  high  turnover  per  person 
employed  (although  note  that  Irish  figures  only  refer  to  enterprises  with  20+  persons 
employed) compared to both the new Member States and the remaining EU15 Member States. 

Figure 3: Turnover per person employed (2009 prices) and average enterprise sizes across Member States 

Source: Eurostat SBS (NACE Rev.1.1) and further calculation., Comparatively high Irish figures at least to some 
extent are due to the data not including enterprises in on-site construction with fewer than 20 persons employed, 
Data not available for Malta. 

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Figure 4: Wage-adjusted labour productivity and its components (2009 prices) across Member States 

Source:  Eurostat  SBS  (NACE  Rev.1.1)  and  further  calculations.  Comparatively  high  Irish  figures  at  least  to 
some  extent  are  due  to  data  not  including  enterprises  in  on-site  construction  with  fewer  than  20  persons 
employed. Data not available for Malta. 

The  lowest  turnover  per  person  employed  among  the  EU15  Member  States  is  recorded  in 
Greece  and  Portugal.  The  lowest  turnover  per  person  employed  among  the  New  Member 
States is recorded in Bulgaria, Lithuania and Romania, reflecting to some extent differences 
in purchasing power and productivity levels. Differences in purchasing power do not explain 
all  the  variation  in  turnover  per  person  employed,  however,  and  other  factors  are  likely  to 
include the quality of workforce and equipment and the frequency of undeclared work. The 
first  graph  also  shows  some  interesting  regional  patterns  regarding  enterprise  sizes.  On  the 
one  hand,  the  southern  European  countries  of  Greece,  Italy,  Portugal  and  Spain  all  have  a 
comparatively  high  number  of  enterprises  relative  to  population  size  and  a  low  average 
enterprise  size  (implying  a  comparatively  high  proportion  of  micro  enterprises  and/or 
comparatively small large enterprises). Only the Czech Republic registered a higher number 
of  enterprises  relative  to  its  population  size  than  these  four  countries  in  2007.  On  the  other 
hand, the countries with  the  largest average enterprise sizes tend to be new Member States. 
Thus,  out  of  the  five  countries  (not  counting  Ireland)  where  the  average  number  of  persons 
employed  per  enterprise  exceeded  10  in  2007,  four  were  Bulgaria,  Latvia,  Romania  and 
Slovakia, and the fifth was Luxembourg — the smallest of the EU27 Member States besides 
Malta (for which no recent data is available) and the only country out of the five where the 
number of enterprises relative to population size was not correspondingly low. 

The second graph shows how enterprises in the new Member States generally tend to record 
comparatively  higher  wage-adjusted  labour  productivity  levels  than  enterprises  in  the  EU15 
Member  States,  led  by  enterprises  in  Bulgaria,  Latvia  and  Romania,  which  generated  more 
than two euros of value added for each euro paid in personnel costs in 2007. Seven of the 11 

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new Member States for which data are available recorded wage adjusted labour productivity 
levels above 150 % and only two, the Czech Republic and Hungary, recorded wage-adjusted 
labour productivity levels below the EU15 average of 128 %. Conversely, only Ireland and the 
United Kingdom among the EU15 Member States recorded wage-adjusted labour productivity 
levels  above  150 %,  driven  by  a  comparatively  high  value  added  per  person  employed  (for 
Ireland the effect of not reporting data for enterprises with less than 20 persons employed are 
unclear,  but  wage-adjusted  labour  productivity  levels  would  appear  to  be  relatively  stable 
across enterprise size classes, even though it is lower among micro enterprises (see Figure 5). 
The lowest wage-adjusted labour productivity levels among the EU15 Member States in 2007 
were recorded by Germany, France, the Netherlands and Sweden — in the latter two countries 
at least in part due to the highest average personnel costs of all Member States. 

Figure 5: Wage-adjusted labour productivity and its components (2009 prices) across enterprise size classes 

Source: Eurostat SBS (NACE Rev.1.1) and further calculations. EU27 averages do not include Ireland, Malta or 
Spain due to missing data. 

Figure  6  shows  that  the  majority  of  employees  in  on-site  construction  aged  18  to  69  has  at 
least an upper secondary education and that this is the case for as many as 86 % in the EU1225. 
However,  the  significant  differences  between  the  EU15  and  EU12  averages  at  least  partly 
reflect differences in the makeup of mandatory educational systems, and only about 10 % of 
the European labour force employed in on-site construction holds a university degree or other 
tertiary qualification. 

25 

According  to  Eurostat,  the  average  share  of  employees  in  on-site  construction  aged  18  to  69  with 
primary or lower secondary educational background is 41 %. However, also according to Eurostat, no 
individual  country  among  the  EU12  except  for  Malta  registers  a  share  of  employees  in  on-site 
construction  aged  18  to  69  above  37 %.  Moreover,  the  EU27  average  according  to  Eurostat  is  lower 
than the EU15 average of 39 % implying that the average for EU12 equally should be lower.  

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The above averages mask some notable regional patterns. Specifically, more than three in five 
employees in on-site construction in the southern European countries including Greece, Italy, 
Malta,  Portugal  and  Spain  have  just  a  primary  or  lower  secondary  educational  background. 
Luxembourg is the only other Member State where this is the case. Also, the eight Member 
States with the lowest shares of employees in on-site construction with just a primary or lower 
secondary educational background form a tight geographical cluster in central Europe, namely 
in  Austria,  the  Czech  Republic,  Germany,  Hungary,  Lithuania,  Poland,  Romania,  and 
Slovakia.  Finally,  employees  in  northern  Europe  including  the  Nordic  countries,  Austria, 
Germany,  the  Netherlands,  Ireland  and  the  United  Kingdom  tend  to  have  relatively  more 
education  and  training,  although  it  is  unclear  to  what  extent  this  is  continuing  vocational 
education  and  training  or  leisure  interest  classes.  Only  in  Slovenia  do  employees  in  on-site 
construction participate in education and training at similar rates. 

Figure 6: Educational attainment levels of employees in on-site construction (NACE section F), 2008 

Source:  Eurostat,  Labour  Force  Survey  (NACE  Rev.1.1)  and  further  calculations.  See  footnote  for  further 
comments on the EU12 average. 

Over  time,  the  shares  of  employees  in  on-site  construction  aged  18  to  69  with  an  upper 
secondary  and  post-secondary  non-tertiary  education  or  a  tertiary  education  have  steadily 
increased in the EU27 (not shown). The incremental changes probably reflect overall changes 
in  the  educational  composition  of  the  European  labour  force  caused  by  inflows  of  better-
educated  young  workers.  But  it  is  difficult  to  discern  the  impact  of  any  concerted  effort  to 
improve educational levels in the limited time span of available data. 

Developments since 2007 

The  most  negative  developments  are  found  in Denmark,  Estonia,  Greece,  Hungary,  Ireland, 
Latvia, Lithuania, Luxembourg, Portugal, Spain and the United Kingdom, where the average 

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quarterly  change  across  available  indicators  (number  of  persons  employed,  new  orders, 
production  volume  and/or  gross  wages  and  salaries  depending  on  country)  fell  below  zero 
(0 %)  and  the  average  quarterly  change  for  at  least  one  individual  indicator  exceeding  a 
negative one (-1 %). On the other hand, Austria, Belgium, Finland, France, Germany, Poland, 
Romania,  Slovakia  and  Sweden  have  fared  relatively  well  in  light  of  the  crisis.  In  these 
countries  the  average  quarterly  change  across  available  on-site  construction  indicators  has 
stayed positive and the average quarterly change for at most one individual indicator is below 
zero (0 %). The countries with the highest decreases in construction activities since 2007 are 
those that had the highest growth rates up to 2007. Another reason for the different impacts of 
the  crisis  on  development  in  national  production  levels  could  be  the  nature  and  impact  of 
planned  construction  work  and  the  varying  effects  of  national  stimulus  packages.  Still,  as 
clear from Figure 7, the on-site construction subsectors in all Member States (with the notable 
exceptions  of  Germany  and  possibly  Belgium  and  Poland)  have  been  adversely  affected  by 
the  financial  crisis  to  some  extent  or  other  (both  Germany  and  Poland  fared  comparatively 
poorly prior to 2007, however). 

Figure  7:  Average  quarterly  changes  in  on-site  construction  (NACE  section  F)  across  Member  States 

Source: Eurostat STS (NACE Rev.2). Performance indicators include the number of persons employed (far left 
red column), new orders (middle left green column), production volume (middle right purple column) and gross 
wages and salaries (far right blue column). Average quarterly growth in new orders based on data until Q4 2008 
only  to  include  new  Member  States.  No  current  data  available  for  Italy,  Malta  or  the  Netherlands.  Countries 
ranked by swing in average quarterly changes between top and bottom rows. 

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Annex 3 

INDIVIDUAL  MEMBER  STATE  PERFORMANCE  IN  MANUFACTURING  OF  CONSTRUCTION 

MATERIALS 

Figures  8  and  9  show  the  key  performance  indicators  for  manufacturing  of  construction 
materials  for  each  of  the  27  Member  States  in  2007.  Figure  8  also  shows  how  in 
manufacturing of construction materials, enterprises in the Nordic countries, Benelux, Ireland 
and  the  United  Kingdom  together  with  France  tend  to  generate  a  comparatively  higher 
turnover  per  person  employed  compared  to  both  the  new  Member  States  and  the  remaining 
EU15 Member States. 

Figure 8: Turnover per person employed (2009 prices) and average enterprise sizes across Member States 

Source: Eurostat SBS (NACE Rev.1.1) and further calculations. Data not available for Malta. 

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Figure 9: Wage-adjusted labour productivity and its components (2009 prices) across Member States 

Source: Eurostat SBS (NACE Rev.1.1) and further calculations. Data not available for Malta. 

The lowest turnover per person employed among the EU15 Member States was recorded in 
Portugal  and  the  lowest  turnover  per  person  employed  among  the  new  Member  States  was 
recorded in Bulgaria, Lithuania and Romania, as it was for enterprises in on-site construction. 
When  comparing  average  turnover  per  person  employed  between  subsectors  country  by 
country, enterprises in manufacturing of construction materials tend to generate a significantly 
higher turnover than enterprises in on-site construction in the EU15 Member States, but this is 
not the case in the new Member States, even in percentage terms. This disparity suggests that 
manufacturing  enterprises  in  the  EU15  Member  States  are  able  to  and  do  employ  more 
modern technology and/or a better qualified workforce than manufacturing enterprises in the 
new  Member  States.  Also  in  manufacturing  of  construction  materials  there  is  a  regional 
pattern  of  comparatively  high  numbers  of  enterprises  relative  to  population  size  and  low 
average  enterprise  sizes  in  Southern  Europe.  The  regional  pattern  noted  in  on-site 
construction of fewer, but larger enterprises in Eastern Europe is less apparent, however. 

Figure 9 shows how manufacturing enterprises like on-site construction enterprises in the new 
Member  States  generally  tend  to  record  comparatively  higher  wage-adjusted  labour 
productivity  levels  than  enterprises  in  the  EU15  Member  States,  led  by  enterprises  in 
Bulgaria,  Latvia,  Poland,  Romania  and  Slovakia,  which  generated  more  than  two  euros  of 
value added for each euro paid in personnel costs in 2007. All of the 11 new Member States 
for which data are available recorded wage-adjusted labour productivity levels above 150 %, 
the  lowest  levels  being  recorded  in  Estonia,  Lithuania  and  Slovenia.  None  recorded  wage-
adjusted labour productivity levels below the EU15 average. Conversely, seven of the EU15 
Member  States  recorded  wage-adjusted  labour  productivity  levels  below  150 %,  namely 
Austria,  Belgium,  Denmark,  Germany,  Italy,  the  Netherlands  and  Sweden.  Comparatively 

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high  average  personnel  costs  are  a  major  factor  in  several  countries.  Similarly  to  on-site 
construction, the highest wage-adjusted labour productivity levels among the EU15 Member 
States in 2007 were recorded by Ireland and the United Kingdom, although much closer to the 
EU15  average  in  this  subsector.  Country–by-country  differences  between  manufacturing  of 
construction materials and on-site construction are greater in the new Member States in value 
added per person employed and wage-adjusted labour productivity levels than in turnover per 
person  employed,  matching  the  differences  observed  between  subsectors  in  the  EU15 
in 
Member  States.  The  generally  higher  wage-adjusted 
manufacturing of construction materials are largely driven by higher value added per person 
employed, given the similar average personnel costs in both subsectors in most countries. 

labour  productivity 

levels 

Developments since 2007 

The  most  negative  developments  have  been  recorded  in  Denmark,  Estonia,  Greece,  Ireland, 
Italy,  Latvia,  Lithuania  and  Spain,  where  the  average  quarterly  change  across  available 
indicators (number of persons employed, turnover, production volume and/or gross wages and 
salaries, with variations across countries, has shifted to below negative (-1 %) and the average 
quarterly  change  for  at  least  one  individual  indicator  exceeds  -2 %.  The  average  quarterly 
change across available indicators has been positive in only one country after 2007, Poland. 
An  additional  nine  countries,  Austria,  Belgium,  the  Czech  Republic,  France,  Germany,  the 
Netherlands,  Portugal,  Sweden  and  the  United  Kingdom,  have  recorded  average  quarterly 
changes across available indicators between zero and minus one (-1 %) with average quarterly 
change on no individual indicator exceeding -2 % (see Figure 10). Compared to developments 
since 2007 in on-site construction, two groups of Member States seem to cluster at either end 
of  the  spectrum.  Current  performance  levels  in  the  Baltic  States,  Ireland,  and  Spain  are 
consistently  the  most  adversely  affected  by  the  financial  crisis  and  performance  levels  in 
Austria,  Belgium,  Germany,  Poland  and  Sweden  are  consistently  among  the  least  affected. 
Apart from the impact or lack of impact of construction projects planned before the crisis and 
stimulus  packages,  the  manufacturing  sector  and  the  trading  sector  (see  below)  are  always 
likely to be directly affected by developments in on-site construction26. 

26 

The general availability of Eurostat STS data is very limited below the NACE section level. It is thus 
impossible  to precisely  detail  developments  within  the various  NACE divisions  and subdivisions  that 
make up the composite ‘Manufacturing of construction materials’ subsector as here defined. However, 
manufacturing of construction materials comprises significant shares of NACE sections C16, C23 and 
C25  and  trends  in  these  broader  categories  of  economic  activity  thus  cannot  move  entirely 
independently of activities within relevant NACE subcategories, or at least are highly unlikely to do so. 
Moreover,  trends  within  each  of  these  broader  categories  of  economic  activity  are  highly  similar, 
suggesting an impact of the financial crisis common to most types of economic activity. Accordingly, 
aggregate  developments  within  manufacturing  of  construction  materials  are  approximated  as  the 
weighted average of changes within C16 (15 %), C23 (45 %) and C25 (40 %) based on relative sizes of 
divisions and subdivisions in terms of persons employed, turnover, value added and personnel costs. 

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Figure 10: Average quarterly changes in manufacturing of construction materials across Member States 

Source: Eurostat STS (NACE Rev.2). Performance indicators include number of persons employed (far left red 
column), turnover (middle left green column), production volume (middle right purple column) and gross wages 
and salaries (far right blue column). Average quarterly growth in number of persons employed in Ireland based 
on  data  until  Q2 2009  only,  due  to  missing  data.  No  current  data  available  for  Cyprus,  Luxembourg,  Malta, 
Slovakia or Slovenia. Countries ranked by swing in average quarterly changes between top and bottom rows. 

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Annex 4 

INDIVIDUAL MEMBER STATE PERFORMANCE IN PROFESSIONAL CONSTRUCTION SERVICES 

Figures 11 and 12 show the key performance indicators for professional construction services 
for  each  of  the  27  Member  States  in  2007.  Figure  11  shows  how  enterprises  in  the  Nordic 
countries, Benelux, Ireland and the United Kingdom together with France and Slovenia tend 
to  generate  a  comparatively  higher  turnover  per  person  employed  compared  to  the  other 
Member States. 

Figure 11: Turnover per person employed (2009 prices) and average enterprise sizes across Member States 

Source: Eurostat SBS (NACE Rev.1.1) and further calculations. Data not available for Malta. 

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Figure 12: Wage-adjusted labour productivity and its components (2009 prices) across Member States 

Source: Eurostat SBS (NACE Rev.1.1) and further calculations. Data not available for Malta. 

The  lowest  turnover  per  person  employed  among  the  EU15  Member  States  is  recorded  in 
Portugal  and  the  lowest  turnover  per  person  employed  among  the  new  Member  States  is 
recorded in Bulgaria and Lithuania, shortly followed by Latvia and Romania. These patterns 
resemble the patterns evident in the other two subsectors. When comparing average turnover 
per  person  employed  across  subsectors,  the  only  countries  in  which  turnover  per  person 
employed is highest in professional construction services are the Czech Republic, Denmark, 
Slovakia  and  Slovenia.  Both  the  regional  pattern  of  comparatively  high  numbers  of 
enterprises relative to population size and low average enterprise sizes in southern Europe and 
the  regional  pattern  of  fewer,  but  larger  enterprises  in  eastern  Europe  noted  in  on-site 
construction are apparent to a lesser extent in this subsector. 

The latter graph shows how professional construction services enterprises in the New Member 
States generally tend to record comparatively higher wage-adjusted labour productivity levels 
than enterprises in the EU15 Member States. As in the other subsectors, wage-adjusted labour 
productivity  levels  in  2007  were  highest  in  enterprises  in  Bulgaria,  Latvia,  Romania  and 
Slovakia,  which  generated  nearly  two  euros  or  more  of  value  added  for  each  euro  paid  in 
personnel  costs.  Compared  to  the  other  subsectors,  however,  there  are  some  notable 
variations.  Hungary  and  Ireland  recorded  two  of  the  three  lowest  wage-adjusted  labour 
productivity levels in professional construction services in 2007 and together with Italy were 
very  close  to  generating  less  than  one  euro  of  value  added  for  each  euro  paid  in  personnel 
costs.  Equally,  Portugal  recorded  the  highest  wage-adjusted  labour  productivity  among  the 
EU15 Member States at above 150 %, a feat only otherwise achieved by the United Kingdom. 
These  discrepancies  probably  reflect  the  upward  pressure  on  average  personnel  costs  of 
differences in the stock of available labour force with the required skills base. 

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Developments since 2007 

The  most  negative  developments  were  seen  in  Estonia,  Ireland,  Latvia  and  Lithuania  where 
the  average  quarterly  change  in  turnover  since  2007  has  shifted  to  below  -2 %,  followed  by 
Greece, Spain and Slovenia, where the average quarterly change in turnover since 2007 has 
shifted to below -1 %. On the other hand, the average quarterly change in turnover since 2007 
remained positive in Austria, Bulgaria, Denmark, Finland, France, Germany, Hungary, Malta, 
the Netherlands, Poland, Romania, Sweden and the United Kingdom, that is, in at least 13 of 
the  EU27  Member  States.  Hungary,  Poland  and  Romania  even  recorded  average  quarterly 
changes  above  2 %.  Nevertheless,  Figure  13  quite  clearly  shows  that  the  professional 
construction services subsectors were also adversely affected, to some extent, by the financial 
crisis in most Member States, except in Poland and possibly Hungary, Malta and Sweden. 

Figure 13: Average quarterly changes in professional construction services across Member States 

Source:  Eurostat  STS  (NACE  Rev.2).  No  current  data  available  for  Belgium,  Italy  and  Portugal.  Countries 
ranked by swing in average quarterly change between top and bottom rows. 

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Annex 5 

THE PROVISION OF EDUCATION AND TRAINING FOR THE CONSTRUCTION SECTOR

27

 IN 

INDIVIDUAL MEMBER STATES 

Education and training systems across Europe vary widely in the degree of centralisation or 
decentralisation,  the  structure  of  training  provision,  the  role  of  the  social  partners,  financial 
structures, and curriculum content. Four education and training systems have been chosen to 
illustrate the type of systemic challenges in each of the systems. 

• 

• 

• 

• 

27 

In  Germany,  the  Vocational  Education  and  Training  system  is  decentralised  and 
corporatist,  as  the  construction  sector  is  the  joint  responsibility  of  the  federal 
government, the Länder (the federal states), the social partners, and enterprises. It is 
based  on  tripartite  cooperation  between  government,  employers,  and  trade  unions, 
which  updates  the  curricula  in  line  with  labour  market  needs.  According  to  some 
stakeholders,  the  current  system  attempts  to  address  too  many  and  too  narrow 
specialisations  within  the  construction  sector.  This  makes  it  more  difficult  for  both 
enterprises and potential apprentices to navigate the system and to adapt to future job 
profiles and skill needs, which often transcend specific occupational profiles. 

training  system 

In Italy, vocational training in the construction industry is carried out by a national 
vocational 
jointly  managed  by  employers  and  employees’ 
federations, based on the national collective agreement for construction firms signed 
by ANCE  (National Association  of Construction Sector Workers) and the workers’ 
unions. A main challenge to the adaptability of the Italian VET system is to define 
and  ensure  comparable  competence  outcomes  and  quality  levels  across  regions.  As 
the  vocational  training  system  is  not  related  to  a  national  qualification  framework, 
two  workers  may  have  the  same  vocational  training  qualifications  but  with  quite 
different content. 

England has an employer-led on-site learning system where students mainly acquire 
competencies  through  company  training.  The  VET-system  is  primarily  regulated 
through  voluntary  agreements.  Employers  contribute  to  apprentices’  wages,  while 
school  training  is  funded  by  the  state.  A  challenge  in  this  system  is  the  continued 
lack  of  suitable  and  sufficient  places  for  apprentices,  even  though  there  is  a 
levy/grant system for employers that take in apprentices. SMEs with annual payrolls 
below  £ 73 000  are  exempt  from  the  levy,  although  they  still  qualify  for  grants, 
advice and support. 

The Bulgarian VET-system is centralised and characterised by school-based training 
and  practice.  Vocational  construction  education  and  training  includes  four  years  of 
general school training followed by the option of an additional year of specialisation. 
At the national level, VET is the responsibility of the relevant ministries. The main 
components of the curriculum are identical for all schools. A challenge of centralised 
systems like the Bulgarian is the rigidity in changing curricula. 

See  ‘Future  Qualification  and  Skills  Needs  in  the  Construction  Sector’,  study  carried  out  by  Danish 
Technological Institute on behalf of the European Commission, DG Enterprise and Industry, July 2009. 

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