Meer documentenQuestions and answers on the 2026 European Semester Spring Package
What is included in this year's European Semester Spring Package?
The 2026 European Semester Spring Package includes:
- A Chapeau communication on the main elements of the European Semester Spring Package;
- Country reports identifying Member States' main economic, structural, employment and social challenges;
- Country-specific recommendations (CSRs) for reforms and investments;
- A report under Article 126(3) evaluating the compliance of EU Member States with the deficit and debt criteria. Based on the assessment included in this report, the Commission proposes to the Council to open an excessive deficit procedure for Bulgaria;
- Commission Recommendation for a Council Decision under Art. 126(12) TFEU abrogating Council Decision (EU) 2024/2128 on the existence of an excessive deficit in Malta.
- Staff Working Document with Fiscal Statistical Tables setting out background data relevant for the assessment of the budgetary policies of the Member States;
- Post-programme surveillance reports assessing the repayment capacities of the Member States that have benefited from financial assistance programmes. The objective is to evaluate the Member States' economic, fiscal and financial situation to ensure that they maintain its capacity to service their debt;
- Assessment on the revised National medium-term fiscal structural plan (MTFSP) of the Netherlands. The MTFSPs set out Member States' commitment to ceilings for net expenditure as well as priority public investments and reforms. Following general elections, the Netherlands has submitted a revised plan. Today, the Commission provides its assessment and publishes its recommendation for a Council Recommendation for the adoption of such a plan;
- Employment Guidelines presenting common priorities for national employment policies and provide the legal basis for country-specific recommendations in the employment and social areas.
What are the key priorities for the European Semester in 2026?
The 2026 European Semester Spring Package sets the priorities for coordinated EU action to strengthen EU competitiveness, resilience, social cohesion and strategic autonomy.
Based on the Competitiveness Compass, it focuses on key Union priorities: unlocking the full potential of the Single Market, closing the innovation gap, accelerating decarbonisation, reducing strategic dependencies, and promoting jobs and skills.
The Package calls on Member States to channel savings towards productive investments, including through national measures to build the Savings and Investments Union. To boost competitiveness, the 2026 CSRs also aim to close Europe's innovation gap and boost research and development (R&D) investment. Member States are advised to make the most of the Single Market to strengthen rule of law, and to ensure effective institutional frameworks.
The Package further emphasises the need to increase administrative efficiency, reduce administrative burdens, and foster digital public services. The Commission also highlights the need for defence readiness—supported by initiatives like the Security Action for Europe (SAFE).
Significant attention is given to the need to accelerate the affordable clean energy transition, enhance energy security, and align with 2030 climate targets. Recommendations range from the need to phase out fossil fuel subsidies that are not targeted and temporary and develop infrastructure through decarbonization of industry and transport, to sustainable management of natural resources.
The recommendations also call on Member States to invest in human capital to boost productivity and competitiveness and promote quality jobs. The package further emphasizes the need to tackle the cost of living crisis by boosting social inclusion, strengthening long-term care, as well as pensions and healthcare systems.
Finally, this year a reinforced territorial dimension has also been reflected in the CSRs, as well as the need to Increase territorial cohesion and the supply and affordability of housing.
How does the European Semester address the ongoing affordability of housing crisis in Europe?
For the first time ever, each country report has a specific annex on housing that provides an extensive analysis of the housing market in each of the 27 EU Member States. Through the European Semester, the Commission aims to help Member States design effective reforms for affordable and social housing, considering the specific context of each country. Recommendations include a number of different measures, including increasing the stock of social and affordable housing, increasing the overall housing supply, simplifying and accelerating permitting to streamlining land use and planning procedures.
This work is integral part of the European Affordable Housing Plan adopted in December 2025 and supplements a number of other initiatives, such as the recently launched European Housing Alliance and the upcoming Affordable Housing Act.
What is the link between the European Semester Spring Package and the new Multiannual Financial Framework (2028-2034)?
In line with the Commission's proposal on the next multiannual financial framework for years 2028-2034, the European Semester would serve as the main reference framework to the National and Regional Partnership Plans (NRPP).
As per the proposal, the NRPP shall effectively address all or a significant subset of challenges identified in the context of the European Semester.
To this end, the 2026 European Semester provides a comprehensive framework to align national and regional reforms and investments with the EU priorities. It also serves as a key analytical basis for identifying and prioritising specific reform and investment needs for key policy areas in each Member State.
The concrete proposals for reforms, investments and other interventions to be included in the NRP Plans will be made by the national and/or regional level taking into account those requirements and the constitutional and institutional set-up and responsibilities within each Member State.
What is the link between the European Semester Spring Package and the implementation of the Recovery and Resilience Facility?
The European Semester Spring Package plays a crucial role in monitoring the implementation of the Recovery and Resilience Facility (RRF), as it provides an assessment of the progress made by Member States in implementing their Recovery and Resilience Plans (RRPs). This will help ensure that Member States are on track to meet their commitments and achieve the objectives of the RRF.
As the RRF is coming to an end in 2026, the European Semester cycle has moved last year to a consolidated set of CSRs, phasing out the approach introduced during the earlier phases of RRF implementation.
The 2026 Spring Package provides guidance on reform and investment priorities in each Member State based on a broadening analysis to identify the relevant structural challenges. This will help to ensure a smooth transition following the conclusion of the RRF and support the continued implementation of reforms and investments that are crucial for strengthening the EU's long-term competitiveness and economic growth.
What is the impact of the approaching Recovery and Resilience Facility (RRF) deadline and what happens when the RRF ends?
With the RRF set to conclude in 2026, on 4 May, the Commission published guidelines for Member States on operational aspects related to its final phase and closure. It informs Member States about the final steps of programme implementation until the end of 2026 and the applicable procedures and obligations beyond 2026.
The priority in 2026 is the successful completion of the RRF and meeting the respective deadlines:
- 31 August 2026 to complete all milestones and targets;
- 30 September 2026 for Member States to submit the last payment request;
- 31 December 2026 for the Commission to make disbursements.
Despite RRF being a temporary instrument to help Member States recover from the COVID-19 economic crisis and to support their structural reforms and investments, the RRF's impact will continue beyond 2026.
The benefits of reforms supported by the RRF will become increasingly visible over the coming years, while certain RRF investments, particularly those channelled through financial instruments, will only impact the real economy in 2027 and beyond.
What are the main themes in the CSRs to Member States?
Similarly to last year, the CSRs include a focus on the pillars and horizontal enablers of the Competitiveness Compass and thus call on Member States to take policy action to strength the EU's competitiveness. In addition, Member States have also received a recommendation to ensure the swift implementation of Cohesion Policy funds.
As every year, the fiscal CSRs set out the Commission's guidance on the fiscal policies Member States are expected to pursue.
With the Recovery and Resilience Facility (RRF) implementation period rearing completion, this year's CSRs do not call on Member States to accelerate implementation of their RRPs. Nevertheless, it remains essential to sustain the reforms and investments supported and implemented under the RRF, particularly those addressing challenges identified in the CSRs. To this end, a general recommendation has been issued to all Member States: “Ensure continuity of reforms and investments implemented under the Recovery and Resilience Facility.”.
How does the European Semester Spring package account for the Middle East crisis, in particular regarding energy?
Advancing the EU's clean energy transition remains the most effective way to strengthen competitiveness and protect our economy and citizens from high energy prices driven by crises such as in the Middle East. Replacing expensive fossil fuel imports with clean, homegrown energy is crucial to strengthen EU's strategic autonomy. It is also essential to ensure affordable energy for the economy of the future.
The Spring Package therefore calls on Member States to continue reducing reliance on fossil fuels and to speed up the clean energy transition. This requires faster implementation of the REPowerEU Plan and energy-related CSRs. To this end, the European Semester encourages Member States to accelerate the roll-out of clean, homegrown energy, strengthen the electricity grids, and increase the electricity storage capacity. The European Semester also promotes energy efficiency and electrification across buildings, transport and industry. Together, these efforts will reduce reliance on imported fossil fuels and limit exposure to volatile global energy markets.
The Connecting Europe Facility has helped finance critical cross-border energy infrastructure, thereby strengthening interconnections and supporting the development of an integrated and sustainable European energy market, and a genuine Energy Union. The upcoming electrification action plan will set an ambitious electrification target and measures to address barriers in the industrial, transport, and building sectors. The Commission will also present a legislative proposal on network charges and taxation, ensuring that electricity is taxed less than natural gas, among other things.
The European Commission acknowledges the need to mitigate the short term economic and social impact of the energy crisis especially as it disproportionately affects lower-income households. The Spring Package, however, underlines that emergency measures addressing the economic and social impact of the energy crisis should be temporary, targeted and fiscally sustainable. Importantly, such measures need to be designed in a way to preserve price incentives to reduce the demand of fossil fuels.
What is the Commission's position on increasing fiscal flexibility under the economic governance framework considering the economic impact of the recent developments in the Middle East?
The Commission is aware of the economic and social consequences of the current energy shock, as well as of the importance of supporting vulnerable households and business while safeguarding Europe's competitiveness and economic resilience.
Given the necessary investment in Europe's long term energy security and upon request by the Member State, the Commission is proposing to make it possible for Member States to request to expand the scope of the existing National Escape Clause (NEC) for defence to energy resilience measures, in a temporary and limited manner.
This possible extension will include measures, undertaken since February 2026, that reduce the dependence on imported fossil fuels and thereby enhance Europe's security and resilience.
Within the existing cap (1.5% of GDP) for additional expenditure for defence under the NEC, a dedicated annual cap for the period 2026-2028 (0.3% of GDP) and a cumulative cap (0.6% of GDP) over that same period will apply specifically for energy resilience measures. Importantly, this approach ensures that all fiscal sustainability safeguards remain fully in place.
To ensure equal treatment, Member States that might have already fully used the flexibility under the NEC to increase defence expenditure could receive temporary and limited additional flexibility under the same conditions as the other Member States. The Commission will in these cases need to reassess whether the deviations would not endanger fiscal sustainability.
To what extent are Member States increasing their defence expenditure and how is this taken into account under the reformed fiscal framework?
As part of the ReArm Europe Plan/Readiness 2030, the Commission has set out a framework for the application of flexibility for defence spending under the reformed fiscal framework.
The activation of the national escape clause (NEC) allows Member States to temporarily deviate from the net expenditure path recommended by the Council, facilitating a transition to higher defence spending at national level while ensuring debt sustainability. It allows flexibility for a maximum of 1.5% of GDP in additional defence expenditure until 2028. So far, 18 Member States have requested the activation of the clause. The use of this flexibility should contribute substantially to bolstering the defence and security capabilities of the European Union and to protecting its citizens.
The EU fiscal rules continue to operate normally apart from the additional leeway for defence expenditure. Throughout the period of the activation of the NEC, the Commission will continue to monitor compliance with the net expenditure paths recommended by the Council. Deviations from the recommended net expenditure paths other than those covered by the NEC for defence will continue to be recorded in the control account that tracks deviations from the recommended net expenditure path.
Thanks to the activation of the NEC for defence expenditure and other EU initiatives, such as SAFE, defence spending is projected to significantly pick up in the EU, reaching a projected 2.0% of GDP in 2027 (from 1.5% in 2024) according to COFOG methodology.
Which Member States have requested the activation of the National Escape Clause so far?
To date, 18 Member States have requested the activation of the national escape clause (NEC) under the Stability and Growth Pact.
The NEC has been activated by the Council, upon recommendation by the Commission, for 17 Member States: Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Austria, Poland, Portugal, Slovenia, Slovakia and Finland.
For Spain, the Commission published a positive assessment of the Spanish request to activate the NEC on 22 May. The Council should adopt its recommendation within the following four weeks.
How is the Commission assessing the fiscal performance of Member States in 2025 and 2026?
In the context of the 2026 European Semester Spring package, the Commission is assessing fiscal performance for all Member States under the reformed economic governance framework, which has now reached a steady state of implementation.
By 2025, all Member States had submitted their medium-term fiscal-structural plans, while in 2026 Ireland and the Netherlands submitted revised plans following the formation of new governments.
The assessment is based on several key inputs: Member States' Annual Progress Reports submitted at the end of April, the Commission Spring 2026 Economic Forecast, and Eurostat outturn data for 2024 and 2025. These elements allow the Commission to assess compliance with the recommended maximum growth rates, as well as, where relevant, the implementation of reforms and investments underpinning an extension of the fiscal adjustment period.
This spring, the assessment covers both 2025 and 2026. The 2026 assessment, based on the Commission Spring 2026 Economic Forecast, will be updated in autumn 2026 and again in spring 2027 on the basis of outturn data for 2026.
At the core of the assessment is the comparison between observed and projected net expenditure growth, on the one hand, and the maximum net expenditure growth rates recommended by the Council, on the other. For Member States that have activated the national escape clause for defence spending, compliance is assessed in cumulative terms, taking into account whether any positive deviation from the recommended ceilings is explained by corresponding increases in defence expenditure.
Which steps did the Commission take in the context of the excessive deficit procedure as part of the Spring package?
For Member States currently under an excessive deficit procedure (EDP), the Commission assessed the action taken in response to the Council recommendations.
For Malta, the Commission recommended that the Council abrogate the EDP, as the deficit was brought below 3% of GDP in 2025 and is projected to remain below this threshold in 2026 and 2027.
For the other Member States under the procedure (Belgium, France, Italy, Hungary, Austria, Poland, Romania, Slovakia and Finland), considering the flexibility from the national escape clause where relevant, the Commission also assessed that effective action has been taken at this stage. Therefore, the EDP is held in abeyance.
Is the Commission recommending opening a new excessive deficit procedure?
The Commission prepared a Report under Article 126(3) of the Treaty on the Functioning of the EU to assess compliance with the Treaty's deficit reference value of 3% of GDP. This concerns five Member States that exceeded, or plan to exceed, the 3% of GDP reference value in 2025 and/or 2026: Bulgaria, Germany, Estonia, Latvia and Slovenia.
In light of the assessment in the report, the opening of an excessive deficit procedure (EDP) is warranted for Bulgaria at this stage. After considering the opinion by the Economic and Financial Committee on the report, the Commission will consider proposing to open the EDP for Bulgaria by recommending to the Council to establish the existence of an excessive deficit as well as a net expenditure path to correct it.
For the other countries covered in the report, the Commission will continue to monitor developments closely and re-examine their situation vis-à-vis the deficit reference value in autumn if warranted.
How does the Commission assess the recent evolution of macroeconomic imbalances?
Some long-standing vulnerabilities related to private debt have continued to recede while risks to government and external debt, competitiveness and housing warrant monitoring in a number of Member States. The main conclusions of the in-depth reviews are as follows:
- Inflationary pressures have been persistent in some Member States amid increasing food prices and indirect tax increases and despite a backdrop of weak economic momentum. Price pressures in some Member States are adding to past cumulated price divergences with the risk of weighing on cost competitiveness. The latest increases in energy prices risk compounding price pressures.
- Current accounts have strengthened further but concerns about large deficits remain. In some Member States, current account deficits are driven by large government deficits and lead to a worsening of external debt positions.
- Households' and corporations' debt ratios continued to decrease but at a slower pace, as credit generally picked up while lower nominal GDP growth was less supportive of reductions in the debt-to-GDP ratios. Government debt ratios have generally increased.
- House prices accelerated further in 2025 amid rising real incomes and constrained housing supply, and they are expected to keep increasing.
- The banking sector has remained sound, with broadly stable profitability and capitalisation.
What are the main findings of the Social Convergence Framework? What are the main risks and challenges to upward social convergence in Member States?
The Social Convergence Framework entails a two-stage analysis to assess risks across Member States. In the first stage, labour market, skills and social policies were analysed and published in the Joint Employment Report 2026, as part of the 2026 European Semester Autumn Package and adopted by the Council in March 2026.
Then, the Commission conducted a more detailed, second-stage review of nine Member States identified as potentially facing risks to social convergence (Bulgaria, Greece, Spain, Italy, Latvia, Lithuania, Luxembourg, Romania and Finland) in April 2026. The report highlighted several challenges:
- Poverty and social exclusion: across all nine Member States, there is a need to enhance the effectiveness of social transfers in reducing poverty. Despite existing support, many people remain at risk.
- Education and skills gaps: some Member States struggle with low adult learning, poor digital skills and high rates of early school leaving. Boosting investment in human capital and improving the alignment of peoples' skills with labour market needs remain critical.
- Labour markets issues: some Member States face high shares of young people not in employment, education and training. Four countries face challenges linked to low employment and high unemployment rates. Further efforts are needed to better integrate underrepresented groups.
How is the Human Capital Recommendation reflected in the Country Report and Country Specific Recommendations?
The new Recommendation on human capital is addressed to the EU as a whole and provides orientations on common challenges related to education and training, productivity and competitiveness, with a focus on strategic EU sectors.
The priorities outlined in the Recommendation have informed the country reports and country-specific recommendations published in the Spring Package.
This year, each Member State has received at least one country-specific recommendation on education and training.
In particular, Member States receive recommendation on tackling labour and skills shortages, strengthening basic skills, promoting participation in vocational education and training and in STEM at all levels of education, as well as boosting adult learning.
What are the new elements in the 2026 Employment Guidelines? What are the next steps?
The proposed guidelines for Member States' employment policies in 2026 set common priorities for fairer and more inclusive national employment and social policies. The updated guidelines add new elements related to:
- Skills, education and training and the link with productivity and competitiveness, in line with the Human Capital Council Recommendation.
- Job quality and link with labour shortages, in line with the Quality Jobs Roadmap and the Employment Committee (EMCO)'s monitoring framework.
- Cost of living crisis and the impact on poverty and social inclusion, in line with the Anti-Poverty Strategy.
The proposed employment guidelines will be negotiated by the Council, and opinions will be produced by the European Parliament, the European Economic and Social Committee (EESC) and the Committee of the Regions (CoR). Then, the Council will need to formally adopt the guidelines.
For more information
2026 European Semester Spring Package - Documents
