On the European Semester for economic policy coordination 2025
A-10-2025-0022
Committee on Economic and Monetary Affairs · Rapporteur: Fernando Navarrete Rojas
- Voted on · Adopted 469–162–54 · See the decision →
- Full procedure 2024/2112
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This resolution on the European Semester for economic policy coordination 2025 notes the EU's resilience and stresses the need for sustainable, inclusive and competitive growth through balanced fiscal policies, reforms and investments.¶ It calls for effective implementation of the revised economic governance framework, timely submission of national plans, and equal treatment of Member States.¶¶ It urges fiscal policies that restore stability while promoting investment, and calls for discussions on EU-level investment instruments for European public goods.¶¶ It highlights concerns about debt levels, deficits, and the declining implementation of country-specific recommendations.¶¶¶
Committee position. The Committee on Economic and Monetary Affairs proposes a resolution that welcomes the new economic governance framework but calls for rigorous, transparent implementation, timely national plans, and measures to boost investment and competitiveness.¶¶¶
Key points
- Calls for sustainable, inclusive and competitive growth through balanced fiscal policies, structural reforms and investments that boost competitiveness and the single market.¶
- Stresses the need for strategic investments in energy interconnections, low-carbon energies and energy efficiency to reduce fossil fuel dependence and improve resilience.¶
- Urges Member States to enhance competitiveness and productivity through better access to funding, reduced administrative burdens, and investment in EU common priorities.¶
- Calls for improving quality and efficiency of public expenditure and revenue, reducing tax avoidance, and redirecting tax burden from income to less distortive bases.¶
- Expresses concern over projected GDP growth and rising public debt ratios, and stresses the need for fiscal buffers.¶¶¶
- Calls on Member States with excessive deficits to take remedial action while minimising socio-economic impact.¶
- Calls for transparent, predictable and replicable debt sustainability analysis, and for the Commission to address methodological improvements.¶
- Calls on Member States that have not submitted their medium-term fiscal-structural or budgetary plans to do so promptly.¶
- Calls on the Commission to ensure that fiscal adjustments are not concentrated at the end of the period and to prevent procyclical policies.¶
- Regrets lack of consultations with independent fiscal institutions, social partners and national parliaments in preparing national plans.¶
- Calls for exploring mechanisms to ensure the euro area's fiscal stance is appropriate for the macroeconomic outlook.¶
- Calls for increasing the share of fully implemented country-specific recommendations and linking them more closely to country reports.¶
Who is affected
- Member States: must submit national plans on time, implement country-specific recommendations, and ensure consultations with stakeholders.¶¶¶
- European Commission: must ensure equal treatment, transparent debt sustainability analysis, and link recommendations to country reports.¶¶
- Independent fiscal institutions: should be consulted on national fiscal plans.¶
Figures and deadlines
- EU GDP growth expected at 0.9% in 2024, 1.5% in 2025, 1.8% in 2026.¶
- Public debt ratio projected at 83.0% in EU and 89.6% in euro area in 2025.¶
- General government deficit expected to decline to 3.1% in EU and 3% in euro area in 2024.¶
- Inflation projected to fall from 2.6% in 2024 to 2.4% in 2025 and 2% in 2026 in EU.¶
- Share of fully implemented country-specific recommendations dropped from 18.1% to 13.9%.¶
Legal basis: Articles 121, 126 and 136 of the Treaty on the Functioning of the European Union¶