The EU has recommended '100% redress' be given to those affected by mica and pyrite.
A report from the European Parliament detailed a fact-finding mission last year which saw eight MEPs travel to County Donegal to engage with local authorities, residents, campaigners and experts.
The report on the defective blocks crisis said that "preferably a new scheme should be devised that delivers 100% redress".
It pointed to a process like the Pyrite Remediation Scheme, overseen by a board similar to the Pyrite Resolution Board and delivered by the Housing Agency.
It also said there should be "more flexibility" to take account of the financial burden of all the costs, such as the cost for new foundations, provisional accommodation and rental costs.
Currently an Enhanced Defective Concrete Blocks Grant Scheme from the Government covers "100% of remediation work up to a maximum of €420,000".
Fine Gael MEP Maria Walsh, who was one of the MEPs involved, told Newstalk Breakfast the country needs to be proactive going forward.
"Other things that I think is really important to stress within the recommendations coming from this is the EU Construction Products Regulation, we need to use and work on EU legislation," she said.
"We need to map the country to ensure that we are understanding of the severity of this, we need to increase market surveillance in Ireland - both at national and local level which currently is not happening."
Not fit for purpose
Ms Walsh said any such approach has to be "proactive versus consistently being on the backfoot".
She said those affected should be given full compensation, dismissing suggestions that some may look to build larger houses.
"I've travelled the length and breathe and Donegal... homeowners that are impacted by mica and pyrite are simply working to rebuild the houses that they have," she said.
"Many houses that were impacted on the east coast of the country with the previous scheme were rebuilt and there was no discussion on the type of size or the lavish trimmings that one has.
"Many houseowners that I've met that are impacted by mica simply want to build a house that is safe and fit for purpose".
Ms Walsh added that many people they spoke with are still paying a mortgage on a house that is not fit for purpose.