A European Semester that works for everyone

At its April 2025 plenary session, the European Economic and Social Committee (EESC) adopted an opinion that aims to reshape how the EU’s economic governance works, putting people and participation at its core. The EESC wants national and EU-level economic decisions to better reflect real-life needs, and to be built on inclusive dialogue with civil society, trade unions and employers’ organisations.

The opinion builds on the EESC’s long-standing role in the European Semester, the EU’s annual process for coordinating economic and fiscal policy. Drawing on input from national stakeholders gathered in a parallel information report, it puts forward policy recommendations to improve reform and investment plans, boost democratic legitimacy, and help the EU respond more effectively to future challenges. Three key areas are targeted: the 2024 Country-Specific Recommendations (CSRs), the newly introduced national medium-term fiscal-structural plans and the ongoing implementation of the national Recovery and Resilience Plans (RRPs) supported by the EU’s Recovery and Resilience Facility (RRF).

Making economic governance more democratic

‘The European Semester can only deliver real results if people are part of the process’., insists rapporteur Luca Jahier. ‘That means structured and meaningful consultations with social partners and civil society organisations (CSOs) must be guaranteed, not only encouraged’. While some Member States did involve stakeholders in the first round of national plans, many fell short, missing a vital opportunity to build ownership and trust. The Committee urges the Commission to propose a binding EU regulation that would set common rules for stakeholder participation. It wants all national governments to consult effectively, explain how feedback is used and ensure transparency at every stage of policy development.

Putting recommendations into action

The EESC emphasises the need for Member States to take their CSRs seriously. Many of these focus on critical issues such as labour market reform, skills development, green transition, housing and competitiveness. Yet implementation is patchy and often delayed. ‘We call for better long-term planning, stronger coordination between institutions and more strategic use of public investment and taxation’, explains rapporteur Javier Doz Orrit. The EESC also stresses the importance of aligning reform efforts with major EU and global goals, from the European Green Deal to the UN’s Sustainable Development Goals. ‘That means a smarter, more joined-up Semester process that measures progress properly and adapts when needed’, adds Doz Orrit.

Speeding up RRP implementation

With the RRF’s deadline looming in August 2026, the EESC warns that many governments risk losing funds due to slow or inefficient implementation of their RRPs. Bureaucracy, poor planning and weak coordination are holding back progress. The Committee urges Member States to invest in administrative capacity, provide training for staff and simplify procedures. Transparency must also be improved – especially around who receives funding and how results are measured. The EESC also calls for flexibility. If more time is needed to deliver high-quality reforms and projects, the spending deadline should be extended. A more adaptable approach would help avoid wasted funds and ensure long-term benefits for people and communities.

Meeting Europe’s investment challenge

Finally, the EESC backs the findings of the Draghi report. ‘Europe must urgently tackle its chronic under-investment if it wants to stay competitive and deliver on climate, digital and social priorities. But this will not be possible if Member States are expected to reduce debt while also stepping up investment’, explains rapporteur Konstantinos Diamantouros.

The solution? Better coordination of national and EU investments, an expanded EU budget and the creation of a Strategic Investment Fund focused on Europe’s shared priorities. The EESC also supports completing the Capital Markets Union to channel private savings into productive investment.

At a time of growing global instability and economic pressure, the EESC’s message is clear: the EU needs an economic governance model that is fair, inclusive and effective. A model that puts citizens at the heart of the process, supports ambitious reforms and ensures that no one is left behind.