Mihai Barcanescu, Policy Manager, EFCA, writes that the European Commission’s new 2025 Work Programme unveils ambitious policy and legislative plans, promising significant changes and opportunities for the consulting engineering sector, from cutting red tape to tackling climate change and the digital revolution.
‘Moving forward together: A bolder, simpler, faster Union’ is the motto under which the European Commission (EC) published on 11 February its detailed Work Programme (WP) for 2025. This was a long-awaited document by public and private stakeholders since it outlines this year’s EC policy and legislative plans.
In brief, the WP is usually based on an analysis made by the EC of the various topics that are either already ongoing or need to be tackled at the EU level, followed by their prioritisation over the year. What makes this WP different is that it outlines the first programme of a new Commission, which made bold promises before being sworn in at the end of last year. Consequently, besides the ‘business-as-usual’ type activities, this year’s programme outlines a sweeping set of long-awaited measures, from those aimed at reducing ‘red tape’ to new policies and legislation, which all look very promising for the consulting engineering sector. New initiatives will tackle climate mitigation, circularity, resilience and the AI revolution, while simplification measures should lighten the regulatory burden for all sectors.
This Commission looks set to have a different and more ambitious approach than the previous ones, and engineers will be at the forefront both as a sector covered by the proposed measures and as solutions providers.
EFCA has carried out a thorough analysis of the 2025 WP, and we will try to outline in the paragraphs below the main challenges and opportunities that our sector must prepare for.
Cutting ‘red tape’
A significant change from the previous EC policy approach is represented by the three Omnibus packages, which are amendments to existing legislation aimed at simplifying and harmonising the current legal framework. The most important is the first Omnibus package, which will address the simplification or elimination of various reporting requirements (sustainability, due diligence, etc.) by companies, as stipulated by current EU legislation, including the (green) Taxonomy. The number of companies in scope of the applicable reporting legislation will thus be reduced by approximately 80%, with SMEs standing to benefit the most, as the simplification measures are generally targeted at them. And as more than 90% of engineering companies are SMEs, these EC proposals are most welcomed by our sector.
The second and third Omnibus packages will aim for other simplifications, harmonisations and reduction of burden at EU level, in particular on EU investment programmes (Second Omnibus package).
Addressing climate change and climate resilience
The topic has long been at the top of the EU agenda, but after the adoption of the Green Deal and its subsequent components (eg, the Fit-for-55 package), it would have appeared that this topic is mostly covered. Not quite.
A smaller but extremely impactful proposal that will be discussed this year is the amendment to the EU Climate Law, which would enshrine the 90% emission reduction target for 2040 (relative to 1990) in EU legislation, effectively boosting all climate-related activities in the 27 member states.
Moreover, the EC published the Clean Industrial Deal through which it aims to turn decarbonisation and circularity into drivers of growth by lowering energy prices, creating quality jobs and competitiveness of companies. The Clean Deal elements, for some of which the legislative process will start as of this year, include:
- An Affordable Energy Action Plan to boost energy production and infrastructure
- The adoption of a Circular Economy Act (foreseen for 2026) and
- An EU Critical Raw Material Centre for joint purchase of raw materials, Clean Trade and Investment Partnerships to diversify supply chains abroad, etc.
European Water Resilience Strategy
Last but not least, the long-promised European Water Resilience Strategy will be published this year. It will focus on ensuring that water sources are properly managed and water scarcity is addressed. Strengthening the competitiveness and innovative edge of the EU water industry and taking a circular economy approach will also be part of this strategy. While the plan will focus on the EU, it will also have a worldwide dimension.
An ever-closer digitalised Union?
Despite the significant efforts the EU has made, it is now clear that other actors – China, the US, etc, either directly or through their companies – are leaders when it comes to digitalisation. Consequently, the 2025 Programme has unveiled a set of proposals that should boost the European sector so that it can at least keep up with its overseas rivals, if not overtake them.
One of the main elements is the AI Continent Action Plan, which includes the establishment of European AI factories and, subsequently, European AI ecosystems. The plan is also foreseen to address forbidden practices (manipulating human behaviour and vulnerable populations), training in AI, sanctions, etc.
AI is becoming an increasingly used tool by engineers as well, for both technical and non-technical aspects, hence the importance of this plan. Once adopted, the plan will likely give way to concrete legislative initiatives at the EU level in the near future.
Related to the above are the Digital Package and the Digital Networks Act. The former is meant to advance the EU’s digital transformation by addressing areas such as digital services, data governance and cybersecurity, as well as supporting digital innovation and protecting users.
The latter will enhance the EU’s digital infrastructure by promoting secure, high-speed broadband access across all member states and facilitating cross-border network operations and service provisions.
Besides the more technical initiatives outlined above, the EC is also looking at ‘softer’ measures, which are no less relevant.
The first is the foreseen improvement of the Single Market via a new strategy. The strategy will focus on the better implementation of existing rules, removing barriers, improving integration and fostering competitiveness. It will also promote the cross-border provision of services and the movement of goods.
SMEs will again receive particular attention, since there is a recognition of the fact that market entry in other EU member states often remains difficult, especially for smaller companies – something also witnessed by the engineering sector.
EU legal framework on public procurement
Perhaps the most important initiative announced in 2025 for the engineering sector is the update of the EU legal framework on public procurement and, in particular, the Public Procurement Directive. To understand the magnitude of this initiative, EU countries spend around 14% of their GDP (around €2tn) yearly on the purchase of services, works and supplies. In many sectors, such as energy, transport, waste management, social protection and the provision of health or education services, public authorities are the principal buyers. This is the bread and butter of the engineering sector.
The stated goal of this update is to better serve public interests, with a specific emphasis on aspects such as strategic procurement for specific sectors and activities (eg, purchase of critical raw materials), sustainability, simplification, increased transparency and efficiency.
Last but not least, it must be noted that while most procurement rules are focused on the internal market, some of the changes will also concern EU funding for and procurement practices in third countries to address issues from sustainability to unfair competition from non-EU companies and countries.
To learn more, visit www.efcanet.org
About the Author
Mihai Barcanescu is Policy Manager with The European Federation of Engineering Consultancy Associations (EFCA), the only federation to represent the engineering consultancy industry in Europe. Founded in 1992, EFCA has member associations in 26 European countries representing over 10,000 companies and more than one million staff in engineering and related services.
