News 2026

On 1 January 2026, Cyprus started its Presidency of the Council of the European Union for the second time, which will run until  30 June, 2026.

A look at the key priorities

“The Cyprus Presidency will work with determination to give new momentum to the European edifice and contribute substantially to the next step in our common journey” – said Nikos Christodoulides, President of the Republic of Cyprus.

The construction industry is positioned as a key delivery sector for EU priorities: Energy security, housing, climate adaptation, competitiveness and cohesion. At the same time, it will face higher sustainability expectations, skills challenges and pressure to deliver faster and cheaper, while benefiting from potential regulatory simplification and stable EU funding.

Based on the official programme, the main presidency’s priorities with a direct or indirect impact on the construction industry are the following:

Water Resilience: The presidency will support the implementation of the European Water Resilience Strategy, ensuring access to clean and affordable water for all. As water-related crises continue to grow in what is a security issue, the presidency will focus on the need for urgent action to improve water resilience across Europe by reducing water consumption, improving water efficiency, managing water stress, and protecting and restoring water bodies.

EU Preparedness Union Strategy: The presidency will prioritise its implementation to ensure that the Union is prepared to protect its citizens (e.g. from geopolitical tensions to climate-driven natural disasters).

• Climate Adaptation: Emphasis will be placed on fostering synergies between the forthcoming European Climate Adaptation Plan and the Water Resilience Strategy, with a view to strengthening Europe’s resilience to climate-related risks and safeguarding the sustainable management of natural resources.
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• Water Sustainability: Discussions on water reuse and desalination will focus on the utilisation of natural and technological solutions on water management, the integration of conventional and non-conventional resources to meet Member States’ diverse needs and the promotion of water sustainability through innovative and integrated strategies. Particular attention will be attributed to the advancement of knowledge and expertise on water technologies and the promotion of feasible innovative solutions that minimise environmental impact, while fully leveraging available EU funding mechanisms.
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• Circular Economy Act: A successful green transition depends on embedding the circular economy principle across all economic activities and throughout the life cycle stages of products.
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A clear and predictable regulatory framework as an enabler of Europe’s competitiveness: The presidency will prioritise regulatory simplification by advancing the Omnibus proposals to streamline EU rules and reduce red tape.

• European Affordable Housing Plan: the presidency will focus on affordable housing, promoting the implementation of the European Affordable Housing Plan with full respect for the principle of subsidiarity and national competences, contributing to efforts to meet the fundamental need for a safe and stable home. Housing will be addressed as a cross-cutting issue, linked to demography, energy efficiency and the fight against energy poverty. The Informal Ministerial Conference on Housing, to be held in May 2026, will provide a high-level platform for strategic dialogue, experience-sharing, and consensus-building among Member States with a view to advancing discussions on the European housing agenda.
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• Environmental Omnibus: The presidency will advance work on the Environmental Omnibus package, aimed at simplifying and streamlining the EU environmental acquis.
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• Industrial Accelerator Act: The presidency will work to initiate and advance negotiations on the upcoming Industrial Accelerator Act (IAA) and to ensure that the Union’s climate ambition is underpinned by concrete and enabling measures.
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• The Cyprus Presidency will continue giving emphasis to the workforce shortages, skills, training, fair labour conditions and resilience, and the work carried out on the 6th revision of the Carcinogens, Mutagens and Reprotoxic Substances Directive (CMRD6). This presidency will finalise the negotiations on the revision of the Regulation 883/04 on Social Security Coordination.
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• As per the long-term EU budget (Multi-annual Financial Framework 2028–2034 / MFF), construction-relevant programmes (cohesion, competitiveness, housing, infrastructure) are embedded in MFF negotiations. The funding levels and priorities to be agreed will then shape construction markets for the next decade.