Parliament’s economic, employment and social priorities for 2026 

This article is brought to you in association with the European Parliament.

• Country specific recommendations should be reconsidered 
• Defence spending should not come at the expense of other policies nor be financed by increased debt 
• European pillar of social rights action plans to be at the core of the European Semester 

In two votes on Wednesday, MEPs called for smart defence spending, better implementation of EU economic governance rules, and measures to address poverty and social exclusion.

Economic priorities

The resolution on economic priorities, adopted with 392 votes in favour, 219 against and 18 abstentions, notes some worrying economic trends, notably on public debt, economic growth and inflation.

MEPs point to the fact that the so-called “escape clauses” in the EU’s revised economic governance rules – which allow for the temporary suspension of the rules – have already been invoked by member states only a year after the rules came into force. They also note the persistence of a tax gap (expected versus actual tax revenues) in several member states.

On the country specific recommendations (CSRs), a key element of the European Semester cycle, MEPs call on the Commission to rethink the way CSRs are elaborated and followed up, in particular with regard to their future role in the access to EU funds. They also reiterate their demand for fewer and more targeted CSRs and want the Commission to clarify the procedures and selection criteria used to propose them.

The resolution stresses that the commitment of member states to increase defence spending should not come at the expense of other EU priorities. It also cautions that defence spending is in nature and does not per se increase an economy’s potential output. Defence spending should therefore not be financed by increased debt issuance in the long term.

Employment and social priorities

In its resolution on employment and social priorities, adopted with 404 votes in favour, 208 against and 20 abstentions, Parliament calls for stronger integration of social objectives into the core of EU economic governance.

MEPs want the European pillar of social rights to be fully implemented and its action plans to be at the core of the European Semester by having them as benchmarks in the Semester’s assessments.

There should be a dedicated budget of at least €20 billion for the European child guarantee, according to Parliament. Member states should allocate at least 5% of European Social Fund+ funds to fighting child poverty and promoting children’s well-being. Countries with child poverty and social exclusion levels higher than the EU average should allocate at least 10%.

MEPs welcome the permanent inclusion of the social convergence framework in the European Semester, while calling on the Commission to improve and update its “social scoreboard” to track progress on upward social convergence, highlighting the need to treat in-work poverty as a warming signal within the scoreboard. They also point to the importance of addressing the disability employment gap, ensuring affordable housing, and tackling poverty in relation to the European Semester.

Quotes

Kira Peter-Hansen (Greens/EFA, DK), rapporteur on the report on economic priorities, said: “In this time of geopolitical turmoil and macroeconomic uncertainty, the European Semester remains absolutely vital for Europe’s economic stability, security, and prosperity. It is more important than ever that member states work together to achieve common objectives. In particular, it is crucial that we maintain a focus on the private and public investments that Europe needs to mobilise to achieve a more resilient, competitive and sustainable European economy.”

Nela Riehl (Greens/EFA, DE), rapporteur on the report on employment and social priorities, said: “The biggest levers for Europe’s economic and social future are located in national budgets. That is why the European Semester matters: we must coordinate how we invest to tackle Europe’s common challenges, from education and skills to quality jobs. Europe’s competitiveness will depend on our ability to invest in our future together.”