Escalating global tensions, heightened security risks, climate change issues, volatile energy prices and cost of living pressures all weigh heavily on Europe’s economy. These pressures are affecting households and businesses, too. In response, the European Commission has set out policy guidance for EU countries to help them revitalise the EU’s competitiveness. The guidance also steers EU countries along a path to greater strategic autonomy, economic and social resilience and cohesion, while maintaining fiscal sustainability.
Country reports
In the country reports for this year, the Commission analyses economic and social developments in each EU country and assesses the extent to which they have been implementing the country-specific recommendations adopted in 2025. Based on the findings, it provides targeted recommendations to EU countries to take action in certain policy areas, like
– lowering single market barriers
– boosting research and development investment
– promoting pensions in supplementary pension schemes
– promoting quality jobs
– combatting poverty
– ensuring the affordability of housing
– accelerating the affordable green energy transition
The Commission also assessed progress in the implementation by concerned EU countries of their medium-term fiscal structural plans and the existence of macroeconomic imbalances for the seven EU countries selected for in-depth reviews in the 2026 alert mechanism report.
Furthermore, in post-programme surveillance reports the Commission assessed the economic, fiscal and financial situation of EU countries that have benefited from financial assistance programmes, focusing on their repayment capacity.
The Commission also proposes updating employment guidelines, setting common priorities for national employment and social policies to make them fairer and more inclusive. These cover new elements focused on improving job quality as well as investing in human capital, by strengthening skills and education.
Delivering on these priorities requires sustained reforms and investment across the EU. In this context, the Recovery and Resilience Facility (RRF), Cohesion policy and other EU funding instruments continue to play a central role in supporting EU countries’ reform efforts and strategic investments.
The Eurogroup and the Council of the European Union will now discuss the documents presented in the 2026 European Semester Spring Package, with a view to endorsing the guidance offered.
For more information
Questions and answers on the 2026 European Semester Spring Package
2026 European Semester Spring Package – Documents
Country pages – Economy and Finance – European Commission