The European Semester was introduced in response to the euro area crisis, chiefly to strengthen fiscal coordination among Member States. Since then, it has been repeatedly adapted and expanded. It has become a multi-layered process for coordinating national economic, employment, social and environmental policies around priorities agreed at EU level. Through the country-specific recommendations, Member States receive policy proposals agreed at EU level. The Economic and Social Committee (EESC), among others, has rightly continued to debate the democratic grounding of the Semester process and to call for stronger involvement of social partners, civil society organisations and parliaments. Compared with other policy areas of the semester, the social dimension also remains under-represented.

Strengthening the Semester and country-specific recommendations

The European Commission plans to put greater emphasis on implementing country-specific recommendations and to link the European Semester to the Multiannual Financial Framework (MFF) for 2028 to 2034. The Commission’s proposal, presented in summer 2025, introduced National and Regional Partnership Plans (NRPPs). With funding of just under €700 billion, these plans would account for a substantial share of the EU’s roughly €2 trillion budget. They mark a major shift, as programmes that previously received fixed funding - including those under agricultural and cohesion policy, such as the European Social Fund+ - would be incorporated into them.

The plans would be developed with national and regional authorities and, according to the Commission’s proposal, “will respond to the main priorities and challenges identified, including through the European Semester”. This link would increase the weight of the Semester’s recommendations, as they would help shape the NRPPs and co-determine the disbursement of MFF funds. Overall, the proposal should be regarded critically, since closer ties between the Semester and the MFF could pressure Member States to implement “irrelevant and, from an economic policy perspective, counterproductive reform requirements”, as the DGB noted in a position paper.

Calls for a more socially balanced Semester

The future of the European Semester was also discussed in late June at the annual conference of the EESC Working Group on the ‘European Semester’, attended by representatives of the EU institutions, Member States, national economic and social councils, social partners, organised civil society and academia. The key message was that the European Semester should promote sustainable competitiveness and social inclusion. Participants stressed that reforms and investments must bring tangible benefits for citizens, especially given the possible link with the next MFF.

According to the EESC, the future framework of the European Semester must strike the right balance between fiscal responsibility, strategic investment and social cohesion. In this context, EESC member Judith Vorbach emphasised: “Social cohesion is the foundation of sustainable competitiveness and economic security. Strengthening the social dimension of the European Semester means, for example, striking a better balance between the Macroeconomic Imbalance Procedure and the Social Convergence Framework, while ensuring stronger delivery of social objectives at national level.”

From AK’s perspective, the social dimension should be strengthened further. The current Spring Semester Package and the country-specific recommendations present a rather sobering picture, with competitiveness prioritised above all other goals. From an Austrian perspective, measures to address rising poverty, promote active labour market policies and decent jobs, and improve healthcare are barely reflected in the recommendations. However, the announced extension of the national escape clause for green investments is a positive development. Given the planned link to the MFF, the current recommendations are especially significant.

Strengthening the democratic legitimacy of the European Semester

A recurring theme at the EESC conference was the need to strengthen the Semester’s democratic ownership. Meaningful stakeholder involvement must become an integral part of every stage of the Semester cycle, but also within the framework of the next MFF, from identifying priorities to implementing and monitoring reforms. These discussions echoed the EESC’s recently adopted Information Report and Resolution “national reforms and investments measures proposed under the European Semester”, as well as its opinion on the 2026 European Semester Autumn Package. Through the Resolution, the EESC calls on the Commission to establish a European Code of Consultation Practices, introduce mandatory assessments of stakeholder involvement throughout the Semester cycle, and strengthen structured dialogue at both national and European levels.

From AK’s perspective, country-specific recommendations must also be drafted transparently and with broad democratic participation. Their implementation often directly affects people across the EU, especially workers. It is also important to preserve Member States’ political room for manoeuvre, as the European Commission can, in principle, only coordinate policy in areas covered by the European Semester. Alongside stronger involvement of social partners, the European Parliament should therefore be granted specific co-decision rights at EU level over European Semester documents and, more broadly, in economic policy.

Further information

EU COMMISSION: EU budget 2028–2034 explained
EU COMMISSION: 2026 Spring Semester Package presents a roadmap for advancing economic resilience and social cohesion across the EU
AK EUROPA: Reform of the European Semester: Democratisation urgently needed
AK EUROPA: New EU budget from 2028. A difficult agreement process lies ahead
AK EUROPA: The future of Cohesion Policy: Will the next EU Budget mean less Funding for Social matters?
AK EUROPA: Demands - The European Semester and economic governance
EESC: A stronger European Semester for competitiveness, social inclusion and the next EU budget