News 2026

On 16^th September at the European Parliament in Strasbourg, European Commission President Ursula von der Leyen delivered her 2026 State of the Union (SOTEU) speech. The address set out an ambitious agenda to strengthen Europe's competitiveness, resilience and strategic autonomy, with several announcements carrying important implications for the European construction industry.

A central theme was the need to accelerate investment and remove barriers that slow down economic growth. Von der Leyen confirmed that the Commission will propose further measures to speed up permitting procedures for projects of strategic European interest and continue efforts to reduce administrative burdens on businesses. She also called for a "pact against gold-plating", urging Member States to complement EU simplification efforts at national level.

For the construction sector, these commitments are particularly relevant as faster permitting and reduced bureaucracy can help accelerate the delivery of infrastructure, energy and industrial projects across Europe.

Energy infrastructure emerged as another key priority. Stressing the need to strengthen Europe's energy independence and lower energy costs, President von der Leyen announced renewed efforts to electrify Europe, double the share of electricity in the energy mix by 2040, and accelerate investments in electricity grids, storage and grid connections. The Commission highlighted the urgency of deploying the forthcoming “Grids Package” to connect new renewable energy capacity and support Europe's clean energy transition.

The speech also reaffirmed Europe's commitment to climate objectives while placing greater emphasis on adaptation and resilience. A new framework for climate resilience is expected next month, alongside initiatives on flood prevention, water management, heatwave preparedness and adaptation technologies. Furthermore, a new European Water Initiative will be put forward. These measures are likely to generate significant investment needs in resilient infrastructure, buildings and civil engineering projects throughout Europe.

Housing affordability was identified as a major social challenge. Following the recent proposal of the first European Housing Act, the Commission reiterated its determination to address housing pressures across Europe, an area in which the construction sector will play a central role.

The address further highlighted the importance of industrial competitiveness and strategic investment. The completion of the Single Market Roadmap, measures to strengthen access to finance, and efforts to secure critical raw materials were all presented as essential elements of Europe's future growth strategy.

Looking beyond the EU, the President confirmed continued support for Ukraine and announced new programmes for joint projects with Ukrainian companies. Reconstruction and infrastructure development remain key areas where European construction expertise can contribute to Ukraine's recovery and long-term resilience.

Overall, the State of the Union underlined that Europe's economic, energy, climate and security ambitions will require substantial investment in infrastructure, industrial facilities, housing, energy networks and resilient built environments. The construction industry therefore remains a strategic partner in delivering Europe's competitiveness and sustainability objectives.

Download the SOTEU full speech 2026 here:

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