2025 European Semester Spring Package sets out guidance to boost EU competitiveness

The 2025 European Semester Spring Package analyses the key economic and social challenges across the EU and offers policy guidance to Member States with the aim of strengthening competitiveness, prosperity and resilience. To that effect, it includes country-specific recommendations (CSRs), and promotes reforms and investments aligned with these EU priorities.

The policy guidance presented comes at a time of a particularly volatile trade and security environment. It is closely linked to the Competitiveness Compass, the Commission’s five-year roadmap to boost the EU’s resilience and global standing. Today’s package also marks the first assessment of Member States’ progress under the revised economic governance framework and their fiscal-structural plans. Amid rising security challenges, the national escape clause (NEC) under the Stability and Growth Pact is also drawn upon for the first time. The aim of the NEC is to facilitate the transition to higher levels of defence expenditure while safeguarding fiscal sustainability.

Targeted recommendations to Member States
The 2025 country reports assess economic, employment and social developments in each Member State, in line with the priorities set out in the Competitiveness Compass. Member States are encouraged to boost their competitiveness by closing the innovation gap, advancing decarbonisation in line with the Clean Industrial Deal, reducing excessive dependencies, increasing security and resilience, including by building up defence capabilities and promoting skills and quality jobs while ensuring social fairness. To support competitiveness across all sectors, the Competitiveness Compass sets out five horizontal enablers that are also reflected in the country-specific recommendations, tailored to each Member State.

This year’s country reports also take stock of the implementation of recovery and resilience plans (RRPs) and Cohesion Policy programmes. With the Recovery and Resilience Facility (RRF) ending in 2026, swift and targeted implementation is essential, with most Member States having to accelerate progress. In parallel, the Commission publishes today a Communication on the RRF towards 2026, to give guidance to Member States on a smooth and successful closure of the instrument. The Commission also seeks to accelerate cohesion policy delivery, focusing on strategic priorities from the mid-term review.

Taking on board the policy objectives of the EU, this year’s CSRs provide guidance tailored to the specific needs of each Member State. They reflect the scale and urgency of required action, across three key areas: (i) fiscal policy, including reforms to increase the effectiveness of tax policy and public expenditures, (ii) implementation of RRP and cohesion policy programmes, and (iii) outstanding and/or newly emerging structural challenges, focusing on the Competitiveness Compass.

Source: European Commission