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MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION
PA_NonLeg
on the European Semester for economic policy coordination 2026
AMENDMENTS
(2025/2214(INI))
The Committee on Budgets submits the following to the Committee on Economic and Monetary Affairs, as the committee responsible :
The European Parliament,
Amendment 1
– having regard to the Treaty on the Functioning of the European Union (TFEU), and in particular Articles 121, 126 and 136 thereof,
Motion for a resolution
– having regard to Protocol No 1 to the Treaty on European Union (TEU) and the TFEU on the role of national parliaments in the European Union,
Citation 15 a (new)
– having regard to Protocol No 2 to the TEU and the TFEU on the application of the principles of subsidiarity and proportionality,
Motion for a resolution
– having regard to the Paris Agreement of the Conference of the Parties to the United Nations Framework Convention on Climate Change of 12 December 2015 and the UN Sustainable Development Goals,
Amendment
– having regard to Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’)1,
– having regard to the Interinstitutional Proclamation on the European Pillar of Social Rights1a of 13 December 2017,
– having regard to Protocol No 12 to the TEU and the TFEU on the excessive deficit procedure,
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– having regard to the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union,
1a OJ C 428, 13.12.2017, p. 10.
– having regard to Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/972,
Amendment 2
– having regard to Council Regulation (EU) 2024/1264 of 29 April 2024 amending Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure3,
Motion for a resolution
– having regard to Council Directive (EU) 2024/1265 of 29 April 2024 amending Directive 2011/85/EU on requirements for budgetary frameworks of the Member States4,
Citation 15 b (new)
– having regard to Regulation (EU) No 1173/2011 of the European Parliament and of the Council of 16 November 2011 on the effective enforcement of budgetary surveillance in the euro area5,
Motion for a resolution
– having regard to Regulation (EU) No 1174/2011 of the European Parliament and of the Council of 16 November 2011 on enforcement measures to correct excessive macroeconomic imbalances in the euro area6,
Amendment
– having regard to Regulation (EU)the NoCommission 1176/2011recommendation of the European25 ParliamentNovember and2025 offor thea Council of 16 November 2011recommendation on thehuman preventioncapital andin correctionthe ofEuropean macroeconomicUnion imbalances7,(COM(2025)0959),
– having regard to Regulation (EU) No 472/2013 of the European Parliament and of the Council of 21 May 2013 on the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability8,
Amendment 3
– having regard to Regulation (EU) No 473/2013 of the European Parliament and of the Council of 21 May 2013 on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the Member States in the euro area9,
Motion for a resolution
– having regard to the Commission’s Spring 2025 Economic Forecast of 15 May 2025,
Citation 19 a (new)
– having regard to the Commission’s Autumn 2025 Economic Forecast of 17 November 2025,
Motion for a resolution
– having regard to the Commission’s Debt Sustainability Monitor 2024 of 17 March 2025,
Amendment
– having regard to the Commission communication of 19 March 2025report entitledby ‘AccommodatingEnrico increasedLetta defenceof expenditureApril within2024 theentitled Stability‘Much andmore Growththan Pact’a (C(2025)2000),market’,
– having regard to the report of 9 September 2024 by Mario Draghi entitled ‘The future of European competitiveness’ (the Draghi report),
Amendment 4
– having regard to the White Paper for European Defence – Readiness 2030 of 20 March 2025,
Motion for a resolution
– having regard to Rule 55 of its Rules of Procedure,
Citation 20 a (new)
– having regard to the opinion of the Committee on Budgets,
Motion for a resolution
– having regard to the report of the Committee on Economic and Monetary Affairs (A10-0000/2025),
Amendment
– having regard to the Commission proposal of 16 July 2025 for a Council regulation laying down the multiannual financial framework for the years 2028 to 2034 (COM(2025)0571),
Amendment 5
Motion for a resolution
Citation 20 b (new)
Motion for a resolution
Amendment
– having regard to the Organisation for Economic Co-operation and Development Economic Surveys: European Union and Euro Area 2025 of July 2025,
Amendment 6
Motion for a resolution
Citation 20 c (new)
Motion for a resolution
Amendment
– having regard to European Court of Auditors special report 21/2025 of 27 October 2025 entitled ‘RRF support for an improved business environment’, and to European Court of Auditors special report 10/2025 of 26 March 2025 entitled ‘Labour market reforms in the national recovery and resilience plans’,
Amendment 7
Motion for a resolution
Recital A
Motion for a resolution
Amendment
A. whereas the European Semester plays an essential role in coordinating and aligning economic and budgetary policies in the Member States;
A. whereas the European Semester plays an essential role in coordinating economic and budgetary policies in the Member States and advancing the EU’s common priorities, including progress made by the Member States towards achieving the UN Sustainable Development Goals;
Amendment 8
Motion for a resolution
Recital A a (new)
Motion for a resolution
Amendment
A a. whereas the European Semester aims to ensure sustainable economic growth, job creation, macroeconomic stability and sound public finances throughout the EU;
Amendment 9
Motion for a resolution
Recital A b (new)
Motion for a resolution
Amendment
A b. whereas in July 2025, the Commission put forward its proposal for the 2028-2034 multiannual financial framework (MFF), which includes a reinforced role for the European Semester, making it part of the proposed ‘new steering mechanism’ in the annual budgetary procedure;
Amendment 10
Motion for a resolution
Recital B
Motion for a resolution
Amendment
B. whereas the European Semester recommendations in 2026 will play an essential role in the design of the national and regional partnership plans to be prepared by Member States in 2027;
B. whereas the European Semester recommendations in 2026 will play an essential role in the design of the national and regional partnership plans to be prepared by Member States in 2027, as part of the proposed policy reference framework;
Amendment 11
Motion for a resolution
Recital B a (new)
Motion for a resolution
Amendment
B a. whereas the economic outlook remains uncertain, owing to the Russian invasion of Ukraine and uncertainty regarding protectionist policies, tariffs and trade tensions;
Amendment 12
Motion for a resolution
Recital B b (new)
Motion for a resolution
Amendment
B b. whereas the European Semester country-specific recommendations also guided the national plans that the Member States needed to submit in order to receive NextGenerationEU Recovery and Resilience Facility (RRF) funds; whereas, nevertheless, some of the reforms undertaken by Member States have not been implemented, have failed to achieve the intended results or are very difficult to evaluate properly;
Amendment 13
Motion for a resolution
Recital C
Motion for a resolution
Amendment
C. whereas according to the Commission’s 2025 autumn forecast, GDP growth in the EU is expected to be close to potential growth, with full employment and inflation close to the target level;
C. whereas according to the Commission’s 2025 autumn forecast, GDP growth in the EU is expected to be close to potential growth, with full employment – although this is not, unfortunately, the case in all Member States, with considerable differences between Member States that have achieved full employment and those that have not – and inflation close to the target level;
Amendment 14
Motion for a resolution
Recital D
Motion for a resolution
Amendment
D. whereas the EU has daunting investment needs, including for an additional annual investment of EUR 800 billion that the Draghi report deems necessary to boost Europe’s competitiveness and an additional EUR 800 billion sought for further defence spending under the ReArm Europe Plan/Readiness 2030;
D. whereas the EU has daunting investment needs, including for an additional annual investment of EUR 800 billion that the Draghi report deems necessary to boost Europe’s competitiveness and an additional EUR 800 billion sought for further defence spending under the ReArm Europe Plan/Readiness 2030; whereas an additional annual investment of EUR 122.2 billion is required to meet circular economy, water, pollution prevention and biodiversity targets; whereas investment efforts cannot rely exclusively on public spending and therefore require mechanisms that can spur and attract private investment;
Amendment 15
Motion for a resolution
Recital E
Motion for a resolution
Amendment
E. whereas the EU is facing major challenges, ranging from threats arising at its eastern borders to geopolitical instability and trade uncertainty, while long-term challenges such as the green and digital transitions remain;
F. whereas the TFEU establishes reference values of up to 3 % for government deficit and 60 % for the debt-to-GDP ratio;
E. whereas the EU is facing major challenges, ranging from threats arising at its eastern and southern borders to geopolitical instability and trade uncertainty, while long-term challenges related to enhancing potential growth, such as the green and digital transitions, remain; whereas these challenges come at a time of growing pressure on public finances and an unfavourable demographic context, requiring increased investments and stronger EU strategic autonomy;
G. whereas the Council has not launched any procedures concerning excessive macroeconomic imbalances since the establishment of this procedure in 2011;
Amendment 16
Motion for a resolution
Recital F a (new)
Motion for a resolution
Amendment
F a. whereas maintaining fiscal stability is key to supporting sustainable economic growth;
Amendment 17
Motion for a resolution
Recital H
Motion for a resolution
Amendment
H. whereas this Commission is committed to being an ‘investment Commission’ but has not yet taken significant action to boost EU investment to a level commensurate with the needs of the green and digital transitions;
Economic prospects for the EU
H. whereas this Commission is committed to being an ‘investment Commission’, aiming to mobilise private capital, but has not yet taken significant action to boost EU investment to a level commensurate with the needs of the ongoing green and digital transitions; whereas the Commission has yet to put forward an adequate response regarding the EU’s massive investment requirements, particularly given the phasing out of the RRF, which will further substantially reduce the EU’s overall spending power;
Amendment 18
Motion for a resolution
Recital H a (new)
Motion for a resolution
Amendment
H a. whereas past crises, including the COVID-19 pandemic, have shown that a common and coordinated EU-wide response strengthens the EU; whereas, in a competitive geoeconomic environment, the EU can better safeguard its interests and values through a unity- and solidarity-based strategy; whereas EU funding has proven to be a crucial instrument for ensuring funding stability and predictability at EU level in the face of multiple successive polycrises since 2019, enhancing internal and external resilience, and supporting Member States in financing crucial investments within the EU;
Amendment 19
Motion for a resolution
Recital H b (new)
Motion for a resolution
Amendment
H b. whereas, according to the International Monetary Fund, structural reforms aimed at deepening the single market could boost the EU’s growth potential; whereas investments rely on a stable and predictable regulatory framework that is conducive to entrepreneurship and private investment, and on sustainable public finances that improve economic stability;
Amendment 20
Motion for a resolution
Paragraph 1
Motion for a resolution
Amendment
1. Notes that over the last five years, the EU has faced major challenges, including the outbreak of the COVID-19 pandemic and the Russian war in Ukraine, which have had major economic impacts; underlines the effectiveness of EU-wide initiatives to address the economic consequences of external shocks, in particular the Recovery and Resilience Facility (RRF);
1. Notes that over the last five years, the EU has faced major challenges, including the outbreak of the COVID-19 pandemic and the Russian war in Ukraine, which have ongoing major economic and social impacts; underlines the effectiveness of EU-wide instruments to address the economic and social consequences of external shocks, in particular the RRF and the European instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE); recalls, furthermore, that promoting sustainable growth involves promoting fiscal discipline and responsible budgetary policies, encouraging investments that increase productivity;
Amendment 21
Motion for a resolution
Paragraph 1 a (new)
Motion for a resolution
Amendment
1 a. Agrees with the Commission that, in the face of an unfavourable international economic environment, demographic trends and weak labour productivity growth, the EU must take decisive action to foster sustainable economic growth, bolster its economic security and support competitiveness and social inclusion;
Amendment 22
Motion for a resolution
Paragraph 1 b (new)
Motion for a resolution
Amendment
1 b. Encourages expanding the provision of European public goods and streamlining the budget to enhance flexibility;
Amendment 23
Motion for a resolution
Paragraph 2
Motion for a resolution
Amendment
2. Notes that, according to the Commission’s autumn 2025 economic forecast, the EU’s GDP is expected to increase by 1.4 % in 2025 compared to 2024;
2. Notes that, according to the Commission’s autumn 2025 economic forecast, the EU’s GDP is expected to increase by 1.4 % in 2025 compared to 2024; notes that, according to that same forecast, the EU’s GDP will also increase by 1.4 % in 2026, rising to 1.5 % in 2027; notes that growth in labour productivity has been lower than expected and that it has been falling continuously since 2014;
Amendment 24
Motion for a resolution
Paragraph 3
Motion for a resolution
Amendment
3. Notes that the general government gross debt-to-GDP ratio is expected to reach 82.8 % in 2025;
3. Notes that the general government gross debt-to-GDP ratio in the EU was expected to reach 82.8 % in 2025; regrets the fact that it is projected to increase to 83.8 % in 2026 and 84.5 % in 2027; notes that the general government gross debt-to-GDP ratio in the euro area was expected to reach 88.8 % in 2025; regrets the fact that general government debt in the euro area is projected to increase to 89.8 % in 2026 and 90.4 % in 2027;
Amendment 25
Motion for a resolution
Paragraph 3 a (new)
Motion for a resolution
Amendment
3 a. Notes that general government deficit in the EU was expected to reach 3.3 % in 2025; regrets the fact that it is projected to increase to 3.4 % in 2026 and 2027; notes that general government deficit in the euro area was expected to reach 3.2 % in 2025; regrets the fact that it is projected to increase, in the euro area, to 3.3 % in 2026 and 3.4 % in 2027; notes that, by 2027, 12 Member States are projected to record a deficit above 3 % of GDP, one percentage point more than in 2025;
Amendment 26
Motion for a resolution
Paragraph 4
Motion for a resolution
Amendment
4. Expresses concern that insufficient private and public investment is likely to hinder sustainable growth in Europe and prevent the EU from meeting the common priorities stated in the EU strategic agenda 2024-2029;
5. Recalls that extreme weather events have a material impact on public finance; is aware that the impact and frequency of extreme weather events will only increase in the coming years as a result of climate change;
4. Expresses concern that insufficient private and public investment following the expiry of the RRF is likely to hinder sustainable growth in Europe and prevent the EU from meeting the common priorities stated in the EU strategic agenda 2024-2029, particularly with regard to competitiveness, security and the ongoing twin transition; highlights the fact that, according to the Commission’s 2025 autumn forecast, public investment in the EU is expected to shift to a downward trend once the RRF comes to an end; insists on the crucial role of the next MFF not only in providing public investment but also in helping to mobilise private investment; underlines, in this context, that financial instruments and budgetary guarantees are powerful and effective tools to achieve critical EU policy goals as well as ready-to-use EU-wide financial instruments;
Amendment 27
Motion for a resolution
Paragraph 4 a (new)
Motion for a resolution
Amendment
4 a. Stresses that the EU budget must be carefully coordinated with national spending and designed in such a way that it includes elements that de-risk, mobilise and leverage private investment effectively, ensure fair opportunities for all Member States, and enhance cross-border cooperation, particularly for smaller economies, so that they can attract capital and drive sustainable growth, enabling start-ups, scale-ups and small and medium-sized enterprises to access funds more readily, while ensuring the additionality of the EU budget;
Amendment 28
Motion for a resolution
Paragraph 5
Motion for a resolution
Amendment
5. Recalls that extreme weather events have a material impact on public finance;is aware that the impact and frequency of extreme weather events will only increase in the coming years as a result of climate change;
5. Recalls that, according to the Commission, extreme weather events have, and will continue to have, a material impact on public finance and financial stability, and chronic economic impacts such as permanent productivity losses; recalls that such events affect financial stability and weaken the financial position of governments that often step in to provide relief or cover losses in the aftermath of a catastrophe; recommends specific measures be taken to close the climate insurance protection gap; stresses, in that regard, that investment in prevention is needed, and priority must be given to the rapid implementation of existing aid mechanisms so that these investments reach affected areas as soon as possible;
Amendment 29
Motion for a resolution
Paragraph 6
Motion for a resolution
Amendment
6. Welcomes the fact that inflation has been brought down to the European Central Bank target level after reaching its peak level of 10.6 % in October 2022; notes, however, that inflation remains at different levels across the Member States, with higher levels in Member States with energy-intensive industries;
7. Is concerned by the macroeconomic stability risks posed by rising housing prices across the Member States, in particular potential restrictions on labour mobility and weakening of the growth in productivity;
6. Welcomes the fact that inflation has been brought down to the European Central Bank target level after reaching its peak level of 10.6 % in October 2022; notes, however, that inflation remains at different levels across the Member States, with higher levels in Member States with energy-intensive industries; recalls that high inflation rates in the EU erode the effectiveness of the MFF and the EU Recovery Instrument, NextGenerationEU, thereby further diminishing overall purchasing power;
Amendment 30
Motion for a resolution
Paragraph 7
Motion for a resolution
Amendment
7. Is concerned by the macroeconomic stability risks posed by rising housing prices across the Member States,in particular potential restrictions on labour mobility and weakening of the growth in productivity;
7. Is concerned by the macroeconomic stability risks posed by rising housing prices across the Member States, in particular sustained price increases and difficult access to housing; recalls that such trends can limit labour mobility and slow down growth in productivity in the long term; criticises the fact that the lack of a consistent, predictable housing policy in some Member States, together with regulatory interventions that have created legal uncertainty, has aggravated market tensions and created obstacles to investment and the supply of affordable housing, which particularly affects young people and families;
Amendment 31
Motion for a resolution
Paragraph 7 a (new)
Motion for a resolution
Amendment
7 a. Encourages action to be taken to enable labour mobility by simplifying and digitalising professional qualifications, and improving social security coordination and pension portability, in order to boost medium-term growth, as stressed by the International Monetary Fund1a;
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1a Kammer A.,‘Making European Reforms a Success on the Ground: Leveraging the EU’s production hubs while leaving no one behind’, International Monetary Fund, 13 November 2025.
Amendment 32
Motion for a resolution
Paragraph 8
Motion for a resolution
Amendment
8. Notes that on average the employment rate in the EU has reached a record-high level; welcomes the integration of the social convergence framework into the joint employment report of the European Semester;
Revised EU economic governance framework
8. Notes that on average the employment rate in the EU has reached a record-high level; welcomes the integration of the social convergence framework into the joint employment report of the European Semester; regrets the large differences in unemployment rates between Member States, particularly with regard to young people; emphasises that intergenerational fairness must become a structural component of the European Semester;
9. Recalls that the purpose of the reform of the economic governance framework is to improve its ability to accommodate the heterogeneity of fiscal positions, public debt and economic challenges, and to help address the medium- and long-term challenges that the EU faces;
Amendment 33
10. Takes note of the targeted amendments to the EU’s economic governance framework published by the Commission on 2 October 2025;
Motion for a resolution
Fiscal stance
Paragraph 11
Motion for a resolution
Amendment
11. Expresses concern over the fact that the RRF is coming to an end in 2026 and over the impact that this might have on the EU’s overall fiscal stance;
12. Notes that the overall fiscal stance of the Member States is broadly neutral in 2025, despite significant disparities across the Member States;
11. Stresses the success of the RRF model in linking EU funds to structural economic reforms, thereby boosting the solidity of the EU economy; expresses concern, however, over the fact that the RRF is coming to an end in 2026 and over the impact that this might have on the EU’s overall fiscal stance, as well as the negative impact it will have on investment; recalls that the RRF was designed to be a one-off instrument to address the economic crisis in the wake of the COVID-19 pandemic; recalls, furthermore, that the debt issued to finance the RRF is to be repaid by 2058 in a manner that ensures the steady and predictable reduction of liabilities;
Country-specific recommendations (CSRs)
Amendment 34
Motion for a resolution
Paragraph 12 a (new)
Motion for a resolution
Amendment
12 a. Highlights the importance of country-specific recommendations (CSRs) as the cornerstone of EU economic policy coordination; recalls that CSRs are policy actions that are also an integral part of the medium-term fiscal structural plans, the national recovery and resilience plans, and the announced national and regional partnership plans (NRPPs); notes that despite the inclusion of CSRs under these frameworks, 33 % of CSRs show no or limited progress in the 2019-2023 period;
Amendment 35
Motion for a resolution
Paragraph 13
Motion for a resolution
Amendment
13. Notes the Commission’s commitment to use the European Semester to promote competitiveness, sustainability and social fairness, as well as to integrate the UN Sustainable Development Goals and the European Pillar of Social Rights into the European Semester;
14. Recalls the role of CSRs in coordinating EU priorities; notes the lack of progress in the effective implementation of the CSRs; calls on the Commission to rethink the way CSRs are developed and followed up; stresses that CSRs should be subject to stronger democratic oversight by the European Parliament; calls for the greater involvement of key stakeholders, such as social partners and civil society organisations, in the drawing up of CSRs;
13. Notes the Commission’s commitment to use the European Semester to promote competitiveness, sustainable economic growth, sustainability, equal opportunities and social fairness, as well as to integrate the UN Sustainable Development Goals and the European Pillar of Social Rights into the European Semester in order to promote prosperity and employment; notes, however, that the CSRs remain compartmentalised under economic, social and environmental targets, with fiscal and economic policy priorities being detached from the other two components; calls on the Commission to better integrate social and environmental policies within fiscal and economic policies to align public resources, including the EU budget, with the green transition, in line with the recommendations of the Coalition of Finance Ministers for Climate Action;
15. Takes notes of the Commission’s intention to further reflect in the CSRs the actions that are instrumental to the savings and investments union, as announced in the Commission communication of 19 March 202510;
Amendment 36
Motion for a resolution
Paragraph 13 a (new)
Motion for a resolution
Amendment
13 a. Recalls that the European Court of Auditors has assessed the use of CSRs within the RRF in two special reports, in which, while recognising that the RRF supported the implementation of relevant CSRs, including milestones and targets, the European Court of Auditors noted the failure to bring about sufficient structural changes; reaffirms the European Court of Auditors’ recommendation to ensure that the key challenges identified in CSRs are addressed, and to set out a robust results framework for assessing the adequacy of the measures;
Amendment 37
Motion for a resolution
Paragraph 14 a (new)
Motion for a resolution
Amendment
14 a. Stresses the importance of adherence to the rule of law by the Member States and, by extension, the rule of law conditionality mechanism; insists that Member States that consistently violate the rule of law should face financial consequences through the EU budget; calls, furthermore, for better alignment with the Commission’s annual rule of law reports, in this regard;
Amendment 38
Motion for a resolution
Paragraph 16
Motion for a resolution
Amendment
16. Notes that CSRs are set to play a greater role in the next multiannual financial framework for guiding investment and reform at national and regional levels; is of the opinion that the selection of reforms and investments should be guided by their effectiveness in addressing the relevant CSRs for achieving a just transition towards a green economy; underlines that this process must be accompanied by stronger democratic scrutiny;
16. Notes that CSRs are set to play a greater role in the next multiannual financial framework for guiding investment and reform at national and regional levels; notes that the European Semester and CSRs are annual exercises, whereas the MFF and NRPPs are multiannual instruments; highlights the fact that this mismatch raises concerns regarding coordination, efficiency and the risk of setting long-term priorities, investments and reforms on the basis of annual and short-term recommendations; emphasises that the design of reforms and investments must be conducted using a bottom-up approach at the appropriate governance level, ensuring ownership by local and regional authorities and the Member States, while ensuring continuity and predictability for managing authorities and beneficiaries; stresses that reforms should underpin investment and not undermine the long-term perspective of cohesion policy; is also of the opinion that the selection of reforms and investments should be guided by their effectiveness in addressing the relevant CSRs, in particular for achieving a just transition towards a green economy and promoting social inclusion, with reforms and investments mutually reinforcing each other and increased policy coherence underpinning the drawing up of national and regional plans as set out in the Commission’s proposal1a; underlines that this process must be accompanied by stronger democratic scrutiny and a transparent procedure involving local and regional authorities, social partners and other relevant stakeholders;
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1a Commission proposal of 16 July 2025 for a regulation of the European Parliament and of the Council establishing the European Fund for economic, social and territorial cohesion, agriculture and rural, fisheries and maritime, prosperity and security for the period 2028-2034 and amending Regulation (EU) 2023/955 and Regulation (EU, Euratom) 2024/2509.
Amendment 39
Motion for a resolution
Paragraph 16 a (new)
Motion for a resolution
Amendment
16 a. Notes that the Commission envisages that the NRPPs submitted by Member States should effectively address all, or at least a significant subset of, the challenges identified in the context of the European Semester; calls on the Commission to clarify this linkage and to explain the implications this approach will have for the development, implementation and legal nature of the CSRs and the European Semester framework, and whether further actions will be needed to make the approach more democratic and transparent;
Amendment 40
Motion for a resolution
Paragraph 16 b (new)
Motion for a resolution
Amendment
16 b. Regrets the fact that the growing importance and potentially more binding character of the CSRs, when linked to the NRPPs, constitutes a significant increase in the Commission’s discretionary power; underlines that there is currently no transparent or traceable methodology for developing and selecting CSRs, nor any clarity on why some are proposed and others not, which raises concerns regarding democratic accountability and equal treatment of Member States; calls on the Commission, in order to make the process more transparent and accountable, to clarify the underlying procedures and selection criteria, specify the internal decision-making processes, indicate which directorates-general are involved, and transmit this information to Parliament; underlines that any overall increase in the Commission’s discretionary power must be accompanied by corresponding accountability mechanisms and a substantial improvement in the flow of information to Parliament;
Amendment 41
Motion for a resolution
Paragraph 16 c (new)
Motion for a resolution
Amendment
16 c. Calls for a stronger quantitative implementation of the European Semester framework through the introduction of common indicators and targets; praises, in this sense, the Digital Decade for establishing specific 2030 targets for Member States to meet;
Amendment 42
Motion for a resolution
Paragraph 17
Motion for a resolution
Amendment
17. Notes that the 2025 CSRs focus more on competitiveness and simplification; regrets the fact that fewer CSRs are dedicated to social and climate policies;
Closing the investment gap
17. Notes that the 2025 CSRs focus more on competitiveness and simplification, and that according to the Commission’s own data, fewer CSRs are dedicated to social and climate policies;
Amendment 43
Motion for a resolution
Paragraph 18
Motion for a resolution
Amendment
18. Recalls that the Draghi report forcefully demonstrated the need to increase public and private investment to boost EU competitiveness;
18. Recalls that the Draghi report forcefully demonstrated the need to increase public and private investment to boost EU competitiveness; recalls that investments in renewables, energy efficiency and the circular economy are crucial for preserving the EU’s strategic autonomy and competitiveness, and for addressing the cost-of-living crisis; recalls, furthermore, that according to the Draghi report, the European approach to competitiveness and innovation ‘must ensure that productivity growth and social inclusion go hand-in-hand’; notes that some Member States have been able to increase their public investment expenditure thanks to better management of their public finances, while other Member States have struggled to support public investment due to narrow fiscal margins; is concerned about the gap in public investment, in terms of percentage of GDP, of up to 4.8 percentage points between EU Member States in 2025;
Amendment 44
Motion for a resolution
Paragraph 18 a (new)
Motion for a resolution
Amendment
18 a. Calls on the Member States to prioritise education as a key driver of productivity and growth; recalls that, according to the Commission’s 2026 European Macroeconomic Report1a, sustained investment in education, training and lifelong learning is essential for Europe’s long-term competitiveness and economic development; recalls that social investment policies can have significant positive effects on economic growth, productivity and competitiveness, thereby also supporting fiscal sustainability while fostering upward social convergence; recalls, furthermore, that for the first time, the Commission has proposed a Council recommendation on human capital, addressed to all Member States, calling for urgent actions to prioritise education and skilling and to reverse the negative trend in basic skills;
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1a European Commission, ‘2026 European Macroeconomic Report’, 25 November 2025.
Amendment 45
Motion for a resolution
Paragraph 18 b (new)
Motion for a resolution
Amendment
18 b. Recalls that, according to the Draghi report, most productive investments must be undertaken by the private sector, while public investment spending should play a catalysing role; stresses the importance of completing the single market and the savings and investments union to mobilise European savings as productive investments within the EU;
Amendment 46
Motion for a resolution
Paragraph 19
Motion for a resolution
Amendment
19. Calls for the establishment of other EU-wide investment capacities to maintain the EU’s capacity to make the necessary investments;
19. Calls for the establishment of EU-wide investment instruments to reinforce the EU’s capacity to make the necessary investments, while minimising the cost for EU taxpayers and maximising efficiency in the provision of European public goods; stresses that these instruments must focus on improving competitiveness, fostering innovation, strengthening European resilience and promoting upward convergence, and must be designed so as to spur private capital, remove barriers to the single market, improve regulatory efficiency and ensure that public resources are used responsibly; reiterates the need for sustainable and resilient revenue for the EU budget that matches the expenditure side; calls for the introduction of new own resources to finance the EU’s policies; considers, therefore, that the introduction of new revenue streams is an essential condition for an ambitious 2028-2034 MFF;
Amendment 47
Motion for a resolution
Paragraph 20
Motion for a resolution
Amendment
20. Notes that the evolving geopolitical environment requires even more unity and solidarity among the Member States; supports the efforts made by the Commission to move towards a more coordinated approach to defence; notes that the Security Action For Europe (SAFE) instrument establishes a loan facility of EUR 150 billion to support Member States’ investments in defence; regrets, however, the fact that the SAFE instrument was based on Article 122 TFEU, limiting parliamentary oversight;
21. Notes that only 16 Member States have activated the national escape clause for defence spending;
20. Notes that the evolving geopolitical environment requires even more unity and solidarity among the Member States, and more efficient management of public resources; supports the efforts made by the Commission to move towards a more coordinated approach to defence; notes that the Security Action For Europe (SAFE) instrument establishes a loan facility of EUR 150 billion to support Member States’ investments in defence; regrets, however, the fact that the SAFE instrument was based on Article 122 TFEU, limiting parliamentary oversight; welcomes the fact that the net expenditure indicator excludes all national co-financing in EU-funded programmes, providing Member States with increased fiscal space to invest in the EU’s common priorities, as laid down in Regulation (EU) 2024/1263, thus helping to strengthen synergies between the EU and national budgets, reducing fragmentation and increasing the overall efficiency of public spending in some areas, such as defence;
22. Recalls that the Commission has never launched an excessive imbalance procedure, despite the fact that some Member States have recurrent current account imbalances;
ANNEX: DECLARATION OF INPUT
°
The rapporteur declares under his exclusive responsibility that he did not include in his report input from interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from representatives of public authorities of third countries, including their diplomatic missions and embassies, to be listed in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure1.
° °
INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION
23. Instructs its President to forward this resolution to the Council and the Commission.
Date adopted
EXPLANATORY STATEMENT
28.1.2026
The European Semester is a significant instrument for coordinating economic and budgetary policy across Member States in the EU with wider implications across other policy areas. The 2026 own initiative report on the European Semester emphasises the considerable investment needs that the EU faces in a situation of increased geopolitical uncertainty, threats on its eastern borders, and major structural challenges related to the competitiveness, resilience and sustainability of the European economy. The rapporteur stresses the need for the EU to meet these challenges and mobilise the necessary public and private investments, in particular related to the green transition, competitiveness and security and defence. The report commends the Commission on the EU-wide instruments applied in response to recent challenges and external shocks, including the Recovery and Resilience Facility (RRF) and the Security Action for Europe (SAFE) instrument, yet expresses concern that we are still far from the targets detailed in the Draghi report for meeting the EU’s wider investment needs.
Result of final vote
The draft report notes that deficit and debt levels vary quite significantly across Member States, which require tailormade policies and recommendations to achieve long-term fiscal sustainability. The report also notes that the average employment rate across the EU has reached a record high. At the same time, the report notes with concern that the RRF is coming to an end in 2026, which may have a negative impact on the overall fiscal stance of the EU. The report also expresses concern over the impact that extreme weather events may have on public finances in the coming years, as well as over the macroeconomic risks associated with increased housing prices across the EU.
+ : 18
On Country Specific Recommendations (CSRs), the report notes the lack of progress in implementing CSRs in Member States and calls for the Commission to rethink the development of and follow-up on CSRs, in particular through a greater inclusion of the European Parliament and key stakeholders such as social partners and civil society organisations. Moreover, the rapporteur encourages the Commission to dedicate more CSRs to climate and social policies. The report also takes note of the plan to give CSRs a more central role in the coming MFF for guiding national and regional investments and reforms, and the rapporteur expresses her view that investments and reforms should be prioritised according to which are the most effective in achieving a just transitions toward a green economy.
- : 8
0 : 2
FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION
18
+
PPE
Georgios Aftias, Isabel Benjumea Benjumea, Gheorghe Falca, Danuse Nerudová, Karlo Ressler, Hélder Sousa Silva
Renew
Fabienne Keller, Lucia Yar
S&D
Matthias Ecke, Jean-Marc Germain, Giuseppe Lupo, Nikos Papandreou, Birgit Sippel, Carla Tavares, Nils Usakovs
Verts/ALE
Ignazio Roberto Marino, Rasmus Nordqvist, Nicolae Stefanuta
8
-
ESN
Siegbert Frank Droese
NI
Thomas Geisel
PfE
Tomasz Buczek, Tamás Deutsch, Angéline Furet, Julien Sanchez
Renew
Engin Eroglu
The Left
Younous Omarjee
2
0
PfE
Jana Nagyová, Jaroslava Pokorná Jermanová
Key:
+ : in favour
- : against
0 : abstentions