Changes between two versions
What changed between the draft committee report and the plenary report
From · draft committee report· 19 Nov 2025
on the European Semester for economic policy coordination 2026
To · plenary report· 2 Mar 2026
on European Semester for economic policy coordination 2026
AI:What changed, in short
Updates economic outlook with new growth, deficit, and debt figures, and adds concerns about inflation and investment needs.378 Expands sections on the economic governance framework, including calls for prudent fiscal policies and concerns about Commission discretion.810 Adds detailed provisions on CSRs, including calls for fewer, more targeted recommendations and transparency in their development.11 Adds measures on defence spending, EU-level investment tools, and new own resources, including a Ukraine loan.13 Other changes are formal or wording: rephrasing and updating references.1245
12 changes of substance · 0 formal · 1 of wording only
Written by AI from the two texts only · read the changes before relying on it · 4 Sept 2026 · Report a problem
+50 added · −24 removed · 13 changed paragraphs, packaging included.
Part 3 of 3: EXPLANATORY STATEMENT
EXPLANATORY STATEMENT
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.
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.
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.