The European Semester kicks off its 2021 exercise with the publication of the Annual Sustainable Growth Strategy. In this document, the Commission outlines the economic and employment policy priorities for the EU, this year focusing on the recovery from the Covid-19 crisis. The Recovery and Resilience Facility is the key recovery instrument at the heart of NextGenerationEU and is intrinsically linked to the European Semester. National plans should also address country-specific recommendations of recent years, enhance economic growth potential, job creation and economic and social resilience, as well as meet the green and digital transitions. To this end, it is crucial that Member States engage in broad policy dialogue with social partners and all other relevant stakeholders when preparing their plans.