FIEC: EU's financial reforms could harm construction industry

Concerned have been voiced by the European Construction Industry Federation (FIEC) over the European Union's proposed reforms relating to financial risk.

The association says that the so-called "Basel III" reforms, currently at the consultation stage, could result in increased capital requirements for banks. FIEC has said that, if the proposed reforms become legislation, large swathes of the construction industry would be negatively affected.

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

FIEC says that it has estimated that, following wholesale implementation of Basel III, conditions for the construction industry could lead to total construction job losses of as many as 170,000 across the bloc. 

The comments by FIEC were uploaded to the European Commission's online consultation site.

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