European Parliament

03/02/2026 | Press release | Distributed by Public on 03/03/2026 08:38

REPORT on European Semester for economic policy coordination 2026

REPORT on European Semester for economic policy coordination 2026

02.03.2026 - (2025/2214(INI))

Committee on Economic and Monetary Affairs
Rapporteur: Kira Marie Peter-Hansen

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on European Semester for economic policy coordination 2026

(2025/2214(INI))

The European Parliament,

- having regard to the Treaty on the Functioning of the European Union (TFEU), in particular Articles 121, 126 and 136 thereof,

- having regard to Protocol No 1 to the Treaty on European Union (TEU) and the TFEU on the role of national parliaments in the European Union,

- having regard to Protocol No 2 to the TEU and the TFEU on the application of the principles of subsidiarity and proportionality,

- having regard to the Paris Agreement of the Conference of the Parties to the UN Framework Convention on Climate Change of 12 December 2015 and the UN Sustainable Development Goals,

- having regard to Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 ('European Climate Law')[1],

- having regard to Protocol No 12 to the TEU and the TFEU on the excessive deficit procedure,

- having regard to the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union,

- having regard to Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97[2],

- having regard to Council Regulation (EU) 2024/1264 of 29 April 2024 amending Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure[3],

- having regard to Council Directive (EU) 2024/1265 of 29 April 2024 amending Directive 2011/85/EU on requirements for budgetary frameworks of the Member States[4],

- having regard to Regulation (EU) No 1173/2011 of the European Parliament and of the Council of 16 November 2011 on the effective enforcement of budgetary surveillance in the euro area[5],

- having regard to Regulation (EU) No 1174/2011 of the European Parliament and of the Council of 16 November 2011 on enforcement measures to correct excessive macroeconomic imbalances in the euro area[6],

- having regard to Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances[7],

- having regard to Regulation (EU) No 472/2013 of the European Parliament and of the Council of 21 May 2013 on the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability[8],

- having regard to Regulation (EU) No 473/2013 of the European Parliament and of the Council of 21 May 2013 on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the Member States in the euro area[9],

- having regard to the Commission's Spring 2025 Economic Forecast of 19 May 2025,

- having regard to the Commission's Autumn 2025 Economic Forecast of 17 November 2025,

- having regard to the Commission's 2026 European Semester Autumn package of 25 November 2025,

- having regard to the Commission's Debt Sustainability Monitor 2024 of 17 March 2025,

- having regard to the Commission communication of 19 March 2025 entitled 'Accommodating increased defence expenditure within the Stability and Growth Pact' (C(2025)2000),

- having regard to the European Fiscal Board's 2025 annual report, published on 22 October 2025,

- having regard to the report of 9 September 2024 by Mario Draghi entitled 'The future of European competitiveness' (the Draghi report),

- having regard to the joint communication by the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 19 March 2025 entitled 'White Paper for European Defence - Readiness 2030' (JOIN(2025)0120),

- having regard to the Joint Research Centre's report entitled 'Measuring sustainable and inclusive well-being: a multidimensional dashboard approach', published on 28 January 2025,

- having regard to the Interinstitutional Proclamation on the European Pillar of Social Rights of 13 December 2017,

- having regard to the La Hulpe Declaration on the Future of the European Pillar of Social Rights of 16 April 2024,

- having regard to the Porto Social Commitment of 7 May 2021 of the Council, the Commission, Parliament and social partners,

- having regard to Rule 55 of its Rules of Procedure,

- having regard to the opinion of the Committee on Budgets,

- having regard to the report of the Committee on Economic and Monetary Affairs (A10-0036/2026),

A. whereas the European Semester plays an essential role in coordinating and aligning economic and budgetary policies in the Member States, with a view to safeguarding the macroeconomic stability of the Economic and Monetary Union and achieving a socially just transition towards a sustainable economy;

B. whereas the European Semester recommendations in 2026 will play an essential role in the design of the national and regional partnership plans to be prepared by the Member States;

C. whereas country-specific recommendations (CSRs) in the framework of the European Semester regularly include cuts in social spending, while barely addressing revenue increases;

D. whereas the economic outlook remains uncertain, notably due to Russia's invasion of Ukraine and the uncertainty generated by protectionist policies, tariffs and trade tensions, all of which have a negative effect on the economy;

E. whereas according to the Commission's autumn 2025 economic forecast, GDP growth in the EU is expected to be close to potential growth, with full employment and inflation close to the target level, although inflation remains elevated in some Member States;

F. whereas for the EU as a whole, the Commission forecasts growth of 1.4 % to 1.5 % between 2025 and 2027, while in the euro area the dynamics are expected to be lower (1.2 % to 1.4 %); whereas potential growth in the EU is expected to decline from approximately 1.5 % in 2024 to 1.3 % in 2027 (in the euro area from 1.4 % to 1.2 %), mainly due to unfavourable demographic trends;

G. whereas the EU has daunting investment needs, including additional annual investments of EUR 800 billion that the Draghi report deems necessary to boost Europe's competitiveness and productivity, including EUR 450 billion for the energy transition alone - of which EUR 260 billion should come from the public sector according to Institut Rousseau; whereas a further EUR 800 billion in additional investments is envisaged for defence spending under the ReArm Europe Plan/Readiness 2030; whereas these investment targets lack corresponding new own resources, leaving the Union without the fiscal capacity needed to meet its stated objectives; whereas these needs cannot be met by public financing alone;

H. whereas the EU is facing major challenges, ranging from persistent threats at its eastern borders linked to Russia's war of aggression against Ukraine to geopolitical instability and trade uncertainty, while long-term challenges such as the green and digital transitions remain;

I. whereas the TFEU establishes reference values of up to 3 % for government deficit and 60 % for the debt-to-GDP ratio; whereas the EU's headline deficit and government debt-to-GDP ratio remain above the reference values; whereas both the headline deficit and government debt-to-GDP ratio vary across the EU, with significantly divergent situations across Member States;

J. whereas the Council has not launched any procedures concerning excessive macroeconomic imbalances since the establishment of this procedure in 2011;

K. whereas the current Commission is committed to being an 'investment Commission' and relies on Parliament's support, as co-legislator, to take significant action to boost EU investment to a level commensurate with the needs of the green and digital transitions; whereas the Commission has yet to put forward an adequate response to the Union's massive investment requirements, particularly given that the Recovery and Resilience Facility (RRF) will be terminated at the end of 2026;

L. whereas past crises, including the COVID-19 pandemic, have shown that a common and coordinated European response strengthens the Union; whereas, in a competitive geoeconomic environment, Europe can safeguard its interests and values only through unity, highlighting the need for a robust macroeconomic policy framework and even closer coordination of economic and social policies through the European Semester;

Economic prospects for the EU

1. Notes that over the last five years, the EU has faced major challenges, including the outbreak of the COVID-19 pandemic and Russia's illegal and unjustified war in Ukraine, which have had major economic impacts; takes note of the swiftness and impact of EU-wide initiatives and instruments to address the economic and social consequences of external shocks, in particular the RRF and the European Instrument for Temporary Support to Mitigate Unemployment Risks in an Emergency (SURE);

2. Notes that, according to the Commission's autumn 2025 economic forecast published on 17 November 2025, the EU's GDP is expected to increase by 1.4 % in 2025 compared to 2024 and by 1.4 % in 2026; observes that, based on this forecast, the EU is still lagging behind the United States and China in terms of growth expectations; highlights that, despite significant challenges, the euro area and the EU have demonstrated resilience;

3. Notes that potential growth, which marks the growth rate an economy can sustain without excess inflation, is set to decline from 1.5 % in 2024 to 1.3 % in 2027 in the EU, and from 1.4 % to 1.2 % in the euro area, as growth in the working-age population slows; considers these potential growth levels to be too low to master the challenges facing the European economy in the years to come;

4. Notes that according to the Commission's autumn 2025 economic forecast, the aggregate euro area deficit is projected to increase from 3.1 % of GDP in 2024 to 3.2 % of GDP in 2025; notes that on the basis of current policies, the deficit is expected to rise to 3.3 % of GDP in 2026;

5. Notes that 12 Member States are set to have deficits exceeding 3 % of GDP in 2027 and that 10 Member States are under excessive deficit procedures;

6. Notes that the general government gross debt-to-GDP ratio in the EU is expected to reach 82.8 % in 2025 and is projected to increase to 83.8 % in 2026 and 84.5 % in 2027, above the 60 % reference value for individual Member States enshrined in the Treaties; notes that the general government debt in the euro area is projected to increase to 89.8 % in 2026 and to 90.4 % in 2027; notes that debt levels vary significantly among Member States;

7. Calls on the Member States to pursue prudent fiscal policies with a view to safeguarding the sustainability of public debt;

8. Recalls that extreme weather events have a material impact on public finance; is aware that the impact and frequency of extreme weather events will only increase in the coming years;

9. Welcomes the fact that inflation in the euro area has been brought down to the European Central Bank target level after reaching its peak of 10.6 % in October 2022; notes, however, that inflation remains at different levels across the Member States, with some having higher levels, including those with energy-intensive industries; notes that both core inflation and inflation expectations still remain above target level; underlines the continued impact of food and energy inflation on European households; notes that inflation affects income groups unevenly, with low-income households being hit the hardest;

10. Expresses concern that insufficient private and public investment is likely to hinder sustainable growth and competitiveness in Europe and prevent the EU from meeting the common priorities set out in the EU strategic agenda 2024-2029; stresses that the Member States must step up efforts to remove barriers and mobilise greater private investment in line with the Commission's savings and investments union strategy; recognises the Commission's political objective of simplifying the regulatory framework and significantly reducing administrative burdens to foster private investment; highlights that investments in areas such as research and development, infrastructure and innovation are urgently needed to increase the EU's potential growth; insists on the crucial role of the next multiannual financial framework not only in providing public investment, but also in helping mobilise private investment and underlines, in this context, that financial instruments and budgetary guarantees are powerful and effective tools for achieving critical EU policy goals as well as ready-to-use EU-wide financial instruments;

11. Notes that the Commission's European macroeconomic report acknowledges that housing affordability is a macroeconomic and social issue, in particular by imposing potential restrictions on labour mobility and weakening productivity growth over the long-term;

12. Highlights that a consistent and comprehensive industrial policy is vital for supporting the EU's technological transformation and secure, resilient supply chains, while preserving competitive and undistorted markets;

13. Notes that, on average, the employment rate in the EU has reached a record-high level, reflecting a dynamic labour market in most Member States; highlights the integration of the social convergence framework into the European Semester; highlights that the model of vocational education and training has proven successful in the Member States that have opted for it; regrets that large differences exist among Member States in terms of unemployment rates, particularly with regard to young people;

14. Reiterates the importance of safeguarding a level playing field in the single market and calls on the Member States to take action to deepen the single market by eliminating internal barriers;

Application of the revised EU economic governance framework

15. Recalls that the purpose of the reform of the economic governance framework is to make it simpler, more transparent and more effective with greater national ownership and better enforcement, and to improve its ability to accommodate the heterogeneity of fiscal positions, public debt and economic challenges, and to help address the medium- and long-term challenges that the EU and its Member States are facing, including by promoting countercyclical fiscal policies;

16. Highlights that, under the reformed economic governance framework, the growth in net expenditure is the single operational indicator to monitor Member States' compliance with the respective Council recommendations; highlights that many Member States will still face insufficient fiscal capacity to meet substantial investment needs; notes that the national escape clause (NEC) has already been activated for defence expenditure only one year after the entry into force of the revised rules as a short-term response to extraordinary events beyond a country's control; underlines that the NEC is intended for temporary, country-specific emergencies and is not suited for addressing long-term structural needs;

17. Stresses that the Commission has expanded its discretionary powers under the reformed economic governance framework, notably through the process underpinning the medium-term fiscal-structural plans; notes the European Fiscal Board's finding that the Commission used some discretion when delaying or deciding not to open excessive deficit procedures; stresses that an even application of the EU's fiscal rules is paramount in order to maintain the credibility of the economic governance framework, ensure equal treatment of Member States and uphold a coherent and genuinely European approach;

18. Takes note of the targeted amendments to the EU's economic governance framework published by the Commission on 2 October 2025, aimed at establishing consistency following the most recent update to the economic governance framework;

19. Notes, with concern, the European Fiscal Board's findings that roughly half of independent fiscal institutions did not formally participate in the preparation of the medium-term fiscal-structural plans; is of the opinion that greater participation of independent fiscal institutions would increase transparency and external oversight at a key moment of transition;

Fiscal stance

20. Highlights that public investment has risen noticeably in recent years, with around half of the increase between 2019 and 2025 financed by the EU, primarily through the RRF; notes that these benefits are expected to continue beyond 2026, with important spillover effects across Member States and that the long-term impact of structural reforms could raise the potential output of the euro area by up to 1.3 % of GDP over the period 2020 to 2033 compared to a scenario without the RRF; expresses concern over the fact that the RRF is coming to an end in 2026 and at the impact that this might have on the EU's overall fiscal stance; urges the Member States to complete the implementation of their recovery and resilience plans by August 2026; recalls that the debt issued to finance the RRF is to be repaid by 2058 in a manner that ensures the steady and predictable reduction of liabilities;

21. Notes the Commission's recommendation that the overall fiscal stance of the Member States remain broadly neutral in 2026, despite significant disparities across the Member States;

22. Stresses that public revenue and public expenditure are essential to ensure the sustainability of national budgets; recalls the Council recommendation on the economic policy of the euro area of 17 February 2026, which calls for tax gaps to be reduced by improving tax compliance, including by addressing tax avoidance and evasion, and combating aggressive tax planning; stresses that weak enforcement in tax administration and in the fight against tax evasion and avoidance undermines fiscal sustainability and contributes to macroeconomic imbalances;

23. Takes note of the Commission's programmatic policy shift in the current European Semester cycle, whereby the Competitiveness Compass provides guidance for the Semester package in place of the Annual Sustainable Growth Survey; highlights that this change strengthens the focus of the Semester framework; highlights the importance of continuity with regard to CSRs designed as multiannual and long-term reform commitments and to Member States' efforts to deliver on long-term objectives; calls on the Commission to ensure a holistic vision of European competitiveness and to ensure that long-term transition priorities continue to be consistently and coherently reflected in CSRs across successive Semester cycles;

Country-specific recommendations

24. Notes that the CSRs for each Member State contain a recommendation on fiscal policy, including fiscal-structural reforms, where relevant; notes the Commission's commitment to use the European Semester to promote competitiveness, stability, economic growth, sustainability and social fairness, and to integrate the UN Sustainable Development Goals and the European Pillar of Social Rights into the European Semester; highlights that the Semester is a key tool for coordinating sound macroeconomic and budgetary policies in the Member States, thereby safeguarding the macroeconomic stability of the Economic and Monetary Union; highlights the importance of CSRs as the cornerstone of European economic policy coordination; recalls that CSRs are policy actions that are also an integral part of the medium-term fiscal-structural plans, the national recovery and resilience plans and the announced proposal for the national and regional partnership plans;

25. Recalls the role of CSRs in coordinating EU priorities; notes the lack of progress in the effective implementation of the CSRs; notes that between 2019 and 2023, 25.1 % of CSRs showed no or limited progress; calls on the Commission to rethink the way in which CSRs are developed and followed up, in particular with regard to their future role in access to EU funds; recalls its demand for fewer and more targeted CSRs;

26. Takes note of the Commission's ambition to further reflect in the CSRs the actions that are instrumental to the savings and investments union, as announced in its communication of 19 March 2025[10];

27. Notes that CSRs are set to play a greater role in the next multiannual financial framework in guiding investment and reform at national and regional level; is of the opinion that the selection of reforms and investments should be guided by their effectiveness in addressing the relevant CSRs for achieving a just transition towards a green and competitive European economy; underlines that this process must be accompanied by stronger democratic scrutiny and greater ownership by Member States;

28. Stresses the growing importance of CSRs linked to the national and regional partnership plans; draws attention to the fact that there is currently no transparent or traceable methodology for developing and selecting CSRs, nor clarity on why some are proposed and others are not, which raises concerns regarding accountability and equal treatment of Member States; calls on the Commission to clarify the underlying procedures and selection criteria; underlines that any overall increase in the Commission's discretionary power must be accompanied by corresponding ex post accountability mechanisms and a substantial improvement in the flow of information towards Parliament;

29. Notes that the 2025 CSRs focused more on competitiveness and simplification, in line with priorities identified in the Competitiveness Compass, while also highlighting the need to boost scientific excellence, research and innovation, and technology development as key drivers of long-term productivity and resilience; underlines that fewer CSRs are being dedicated to social and climate policies; notes that for some Member States, the CSRs include a recommendation to phase out fossil fuel subsidies;

30. Notes that the Commission considers the euro area recommendation to be first and foremost a steering tool for Eurogroup discussions; invites the Commission, however, to follow up on euro area recommendations, including by taking them into consideration when developing CSRs; regrets that in 2025, the Commission did not publish an overview of the implementation of euro area recommendations, as it used to do as part of its euro area reports; notes that in 2025, CSRs did not directly include any climate-change-related recommendations;

Closing the investment gap

31. Recalls that the Draghi report forcefully demonstrated the need to increase public and private investment and pursue ambitious reforms to boost EU competitiveness; calls on the Commission and the Member States to present a strategy to meet investment needs beyond 2026;

32. Believes that the EU economic governance framework should be complemented by EU-level instruments and tools, where appropriate, in order to minimise the costs for EU taxpayers and maximise efficiency in the provision of European public goods and to respond to Union-wide crises, such as the ongoing crisis in the area of security and defence; notes that EU debt securities could serve as a benchmark, thereby strengthening the integration of EU financial markets; calls for the introduction of new own resources to finance the Union's policies; supports the creation of the European Competitiveness Fund and the Scaleup Europe Fund;

33. Underlines the European Council's agreement to provide an EUR 90 billion loan to Ukraine for 2026 and 2027, based on EU borrowing on the capital markets backed by the EU budget's headroom;

34. Notes that the evolving geopolitical environment requires even more unity and solidarity among the Member States, especially when taking into account the security concerns of the EU and its Member States; considers that strengthening Europe's security by reducing strategic dependencies remains essential to safeguarding the Union's long-term resilience; supports the Commission's efforts to move towards a more coordinated approach to defence; notes that the Security Action For Europe (SAFE) instrument establishes a loan facility of EUR 150 billion to support Member State investments in defence; regrets the fact, however, that the SAFE instrument was based on Article 122 TFEU, limiting parliamentary oversight; welcomes the fact that the net expenditure indicator excludes all national co-financing of EU-funded programmes, providing increased fiscal space for Member States to invest in the EU's common priorities, as laid down in Regulation (EU) 2024/1263[11], thus helping to strengthen synergies between the EU budget and national budgets, thereby reducing fragmentation and increasing the overall efficiency of public spending in some areas, such as defence; stresses that Member States' commitment to increase defence spending should not come at the expense of other EU common priorities;

35. Notes that 16 Member States have activated the NEC for defence spending; underlines that this provides Member States with flexibility to increase defence expenditure without an immediate need to finance such increases through spending cuts or revenue-raising measures; notes that this flexibility thus gives Member States the necessary time to accommodate higher defence expenditure within national budgets; highlights that the partial participation significantly reduces the projected additional defence expenditure from EUR 650 billion to approximately EUR 297-337 billion;

36. Cautions that defence spending is consumptive investment by nature and does not per se increase an economy's potential output; considers that defence spending should therefore not be financed through increased debt issuance in the long-term;

37. Stresses the importance of increasing coherence and cooperation in defence investment across Member States, particularly as regards strategic enablers or strategic weapons systems that are too expensive for individual Member States, in the light of the pressing need to scale up the European defence sector and ensure long-term security and strategic autonomy;

38. Recalls that the Commission has never launched an excessive imbalance procedure, despite the fact that some Member States have recurrent imbalances in their current accounts; notes that the Commission will assess the existence of macroeconomic imbalances for the seven Member States selected for in-depth reviews in its 2026 alert mechanism report;

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39. Instructs its President to forward this resolution to the Council and the Commission.


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.


ANNEX: DECLARATION OF INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that she included in her report input on matters pertaining to the subject of the file that she received, in the preparation of the report, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register[1], or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:

1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register

Bruegel AISBL

CAN Europe

2. Representatives of public authorities of third countries, including their diplomatic missions and embassies(3)

The list above is drawn up under the exclusive responsibility of the rapporteur(s).

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that she has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.


26.2.2026

MINORITY POSITION

pursuant to Rule 56(4) of the Rules of Procedure

Manon Aubry

This report on the European Semester once again shows that no lessons have been learned from past mistakes. Rather than questioning the knee-jerk austerity that has weakened our societies, it continues to encourage Member States to pursue budgetary policies that cut public services. With a rapporteur from the Greens, we were hoping for a change of tack. The initial draft report did contain some valid items: the need to seek out new sources of revenue, especially from among the wealthiest members of society, and to factor in the impact of climate change on public finances. However, as the discussions progressed, key passages on climate change, inflation, housing and tax revenue were deleted, following pressure from the right. The final report resorts to the same old logic: fiscal discipline first, private rather than public investment, and no tax justice. We also lament the fact that a common-sense proposal was rejected: extend the escape clause beyond the area of defence to allow emergency spending in response to other temporary crises, such as climate or health crises. The Covid crisis should have made the need for this quite clear. We therefore cannot support this text.


OPINION OF THE COMMITTEE ON BUDGETS (05.02.2026)

for the Committee on Economic and Monetary Affairs

on the European Semester for economic policy coordination 2026

(2025/2214(INI))

Rapporteur for opinion: Damian Boeselager

AMENDMENTS

The Committee on Budgets submits the following to the Committee on Economic and Monetary Affairs, as the committee responsible :

Amendment 1

Motion for a resolution

Citation 15 a (new)

Motion for a resolution

Amendment

- having regard to the Interinstitutional Proclamation on the European Pillar of Social Rights1aof 13 December 2017,

_________________

1a OJ C 428, 13.12.2017, p. 10.

Amendment 2

Motion for a resolution

Citation 15 b (new)

Motion for a resolution

Amendment

- having regard to the Commission recommendation of 25 November 2025 for a Council recommendation on human capital in the European Union (COM(2025)0959),

Amendment 3

Motion for a resolution

Citation 19 a (new)

Motion for a resolution

Amendment

- having regard to the report by Enrico Letta of April 2024 entitled 'Much more than a market',

Amendment 4

Motion for a resolution

Citation 20 a (new)

Motion for a resolution

Amendment

- having regard to the Commission proposal of 16 July 2025 for a Council regulation laying down the multiannual financial framework for the years 2028 to 2034 (COM(2025)0571),

Amendment 5

Motion for a resolution

Citation 20 b (new)

Motion for a resolution

Amendment

- having regard to the Organisation for Economic Co-operation and Development Economic Surveys: European Union and Euro Area 2025 of July 2025,

Amendment 6

Motion for a resolution

Citation 20 c (new)

Motion for a resolution

Amendment

- having regard to European Court of Auditors special report 21/2025 of 27 October 2025 entitled 'RRF support for an improved business environment', and to European Court of Auditors special report 10/2025 of 26 March 2025 entitled 'Labour market reforms in the national recovery and resilience plans',

Amendment 7

Motion for a resolution

Recital A

Motion for a resolution

Amendment

A. whereas the European Semester plays an essential role in coordinating and aligning economic and budgetary policies in the Member States;

A. whereas the European Semester plays an essential role in coordinating economic and budgetary policies in the Member Statesand advancing the EU's common priorities, including progress made by the Member States towards achieving the UN Sustainable Development Goals;

Amendment 8

Motion for a resolution

Recital A a (new)

Motion for a resolution

Amendment

A a. whereas the European Semester aims to ensure sustainable economic growth, job creation, macroeconomic stability and sound public finances throughout the EU;

Amendment 9

Motion for a resolution

Recital A b (new)

Motion for a resolution

Amendment

A b. whereas in July 2025, the Commission put forward its proposal for the 2028-2034 multiannual financial framework (MFF), which includes a reinforced role for the European Semester, making it part of the proposed 'new steering mechanism' in the annual budgetary procedure;

Amendment 10

Motion for a resolution

Recital B

Motion for a resolution

Amendment

B. whereas the European Semester recommendations in 2026 will play an essential role in the design of the national and regional partnership plans to be prepared by Member States in 2027;

B. whereas the European Semester recommendations in 2026 will play an essential role in the design of the national and regional partnership plans to be prepared by Member States in 2027, as part of the proposed policy reference framework;

Amendment 11

Motion for a resolution

Recital B a (new)

Motion for a resolution

Amendment

B a. whereas the economic outlook remains uncertain, owing to the Russian invasion of Ukraine and uncertainty regarding protectionist policies, tariffs and trade tensions;

Amendment 12

Motion for a resolution

Recital B b (new)

Motion for a resolution

Amendment

B b. whereas the European Semester country-specific recommendations also guided the national plans that the Member States needed to submit in order to receive NextGenerationEU Recovery and Resilience Facility (RRF) funds; whereas, nevertheless, some of the reforms undertaken by Member States have not been implemented, have failed to achieve the intended results or are very difficult to evaluate properly;

Amendment 13

Motion for a resolution

Recital C

Motion for a resolution

Amendment

C. whereas according to the Commission's 2025 autumn forecast, GDP growth in the EU is expected to be close to potential growth, with full employment and inflation close to the target level;

C. whereas according to the Commission's 2025 autumn forecast, GDP growth in the EU is expected to be close to potential growth, with full employment - although this is not, unfortunately, the case in all Member States, with considerable differences between Member States that have achieved full employment and those that have not - and inflation close to the target level;

Amendment 14

Motion for a resolution

Recital D

Motion for a resolution

Amendment

D. whereas the EU has daunting investment needs, including for an additional annual investment of EUR 800 billion that the Draghi report deems necessary to boost Europe's competitiveness and an additional EUR 800 billion sought for further defence spending under the ReArm Europe Plan/Readiness 2030;

D. whereas the EU has daunting investment needs, including for an additional annual investment of EUR 800 billion that the Draghi report deems necessary to boost Europe's competitiveness and an additional EUR 800 billion sought for further defence spending under the ReArm Europe Plan/Readiness 2030;whereas an additional annual investment of EUR 122.2 billion is required to meet circular economy, water, pollution prevention and biodiversity targets; whereas investment efforts cannot rely exclusively on public spending and therefore require mechanisms that can spur and attract private investment;

Amendment 15

Motion for a resolution

Recital E

Motion for a resolution

Amendment

E. whereas the EU is facing major challenges, ranging from threats arising at its eastern borders to geopolitical instability and trade uncertainty, while long-term challenges such as the green and digital transitions remain;

E. whereas the EU is facing major challenges, ranging from threats arising at its eastern and southern borders to geopolitical instability and trade uncertainty, while long-term challenges related to enhancing potential growth, such as the green and digital transitions,remain;whereas these challenges come at a time of growing pressure on public finances and an unfavourable demographic context, requiring increased investments and stronger EU strategic autonomy;

Amendment 16

Motion for a resolution

Recital F a (new)

Motion for a resolution

Amendment

F a. whereas maintaining fiscal stability is key to supporting sustainable economic growth;

Amendment 17

Motion for a resolution

Recital H

Motion for a resolution

Amendment

H. whereas this Commission is committed to being an 'investment Commission' but has not yet taken significant action to boost EU investment to a level commensurate with the needs of the green and digital transitions;

H. whereas this Commission is committed to being an 'investment Commission', aiming to mobilise private capital,but has not yet taken significant action to boost EU investment to a level commensurate with the needs of the ongoing green and digital transitions;whereas the Commission has yet to put forward an adequate response regarding the EU's massive investment requirements, particularly given the phasing out of the RRF, which will further substantially reduce the EU's overall spending power;

Amendment 18

Motion for a resolution

Recital H a (new)

Motion for a resolution

Amendment

H a. whereas past crises, including the COVID-19 pandemic, have shown that a common and coordinated EU-wide response strengthens the EU; whereas, in a competitive geoeconomic environment, the EU can better safeguard its interests and values through a unity- and solidarity-based strategy; whereas EU funding has proven to be a crucial instrument for ensuring funding stability and predictability at EU level in the face of multiple successive polycrises since 2019, enhancing internal and external resilience, and supporting Member States in financing crucial investments within the EU;

Amendment 19

Motion for a resolution

Recital H b (new)

Motion for a resolution

Amendment

H b. whereas, according to the International Monetary Fund, structural reforms aimed at deepening the single market could boost the EU's growth potential; whereas investments rely on a stable and predictable regulatory framework that is conducive to entrepreneurship and private investment, and on sustainable public finances that improve economic stability;

Amendment 20

Motion for a resolution

Paragraph 1

Motion for a resolution

Amendment

1. Notes that over the last five years, the EU has faced major challenges, including the outbreak of the COVID-19 pandemic and the Russian war in Ukraine, which have hadmajor economic impacts; underlines the effectiveness of EU-wide initiativesto address the economic consequences of external shocks, in particular the Recovery and Resilience Facility (RRF);

1. Notes that over the last five years, the EU has faced major challenges, including the outbreak of the COVID-19 pandemic and the Russian war in Ukraine, which have ongoingmajor economicand socialimpacts; underlines the effectiveness of EU-wide instrumentsto address the economic and social consequences of external shocks, in particular the RRF and the European instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE);recalls, furthermore, that promoting sustainable growth involves promoting fiscal discipline and responsible budgetary policies, encouraging investments that increase productivity;

Amendment 21

Motion for a resolution

Paragraph 1 a (new)

Motion for a resolution

Amendment

1 a. Agrees with the Commission that, in the face of an unfavourable international economic environment, demographic trends and weak labour productivity growth, the EU must take decisive action to foster sustainable economic growth, bolster its economic security and support competitiveness and social inclusion;

Amendment 22

Motion for a resolution

Paragraph 1 b (new)

Motion for a resolution

Amendment

1 b. Encourages expanding the provision of European public goods and streamlining the budget to enhance flexibility;

Amendment 23

Motion for a resolution

Paragraph 2

Motion for a resolution

Amendment

2. Notes that, according to the Commission's autumn 2025 economic forecast, the EU's GDP is expected to increase by 1.4 % in 2025 compared to 2024;

2. Notes that, according to the Commission's autumn 2025 economic forecast, the EU's GDP is expected to increase by 1.4 % in 2025 compared to 2024;notes that, according to that same forecast, the EU's GDP will also increase by 1.4 % in 2026, rising to 1.5 % in 2027; notes that growth in labour productivity has been lower than expected and that it has been falling continuously since 2014;

Amendment 24

Motion for a resolution

Paragraph 3

Motion for a resolution

Amendment

3. Notes that the general government gross debt-to-GDP ratio isexpected to reach 82.8 % in 2025;

3. Notes that the general government gross debt-to-GDP ratio in the EU wasexpected to reach 82.8 % in 2025; regrets the fact that it is projected to increase to 83.8 % in 2026 and 84.5 % in 2027; notes that the general government gross debt-to-GDP ratio in the euro area was expected to reach 88.8 % in 2025;regrets the fact that general government debt in the euro area is projected to increase to 89.8 % in 2026 and 90.4 % in 2027;

Amendment 25

Motion for a resolution

Paragraph 3 a (new)

Motion for a resolution

Amendment

3 a. Notes that general government deficit in the EU was expected to reach 3.3 % in 2025; regrets the fact that it is projected to increase to 3.4 % in 2026 and 2027; notes that general government deficit in the euro area was expected to reach 3.2 % in 2025; regrets the fact that it is projected to increase, in the euro area, to 3.3 % in 2026 and 3.4 % in 2027; notes that, by 2027, 12 Member States are projected to record a deficit above 3 % of GDP, one percentage point more than in 2025;

Amendment 26

Motion for a resolution

Paragraph 4

Motion for a resolution

Amendment

4. Expresses concern that insufficient private and public investment is likely to hinder sustainable growth in Europe and prevent the EU from meeting the common priorities stated in the EU strategic agenda 2024-2029;

4. Expresses concern that insufficient private and public investment following the expiry of the RRF is likely to hinder sustainable growth in Europe and prevent the EU from meeting the common priorities stated in the EU strategic agenda 2024-2029, particularly with regard to competitiveness, security and the ongoing twin transition; highlights the fact that, according to the Commission's 2025 autumn forecast, public investment in the EU is expected to shift to a downward trend once the RRF comes to an end; insists on the crucial role of the next MFF not only in providing public investment but also in helping to mobilise private investment; underlines, in this context, that financial instruments and budgetary guarantees are powerful and effective tools to achieve critical EU policy goals as well as ready-to-use EU-wide financial instruments;

Amendment 27

Motion for a resolution

Paragraph 4 a (new)

Motion for a resolution

Amendment

4 a. Stresses that the EU budget must be carefully coordinated with national spending and designed in such a way that it includes elements that de-risk, mobilise and leverage private investment effectively, ensure fair opportunities for all Member States, and enhance cross-border cooperation, particularly for smaller economies, so that they can attract capital and drive sustainable growth, enabling start-ups, scale-ups and small and medium-sized enterprises to access funds more readily, while ensuring the additionality of the EU budget;

Amendment 28

Motion for a resolution

Paragraph 5

Motion for a resolution

Amendment

5. Recalls that extreme weather events have a material impact on public finance;is aware that the impact and frequency of extreme weather events will only increasein the coming years as a result of climate change;

5. Recalls that, according to the Commission,extreme weather events have, and will continue to have,a material impact on public financeand financial stability, and chronic economic impacts such as permanent productivity losses; recalls that such events affect financial stability and weaken the financial position of governments that often step in to provide relief or cover lossesin the aftermath of a catastrophe; recommends specific measures be taken to close the climate insurance protection gap; stresses, in that regard, that investment in prevention is needed, and priority must be given to the rapid implementation of existing aid mechanisms so that these investments reach affected areas as soon as possible;

Amendment 29

Motion for a resolution

Paragraph 6

Motion for a resolution

Amendment

6. Welcomes the fact that inflation has been brought down to the European Central Bank target level after reaching its peak level of 10.6 % in October 2022; notes, however, that inflation remains at different levels across the Member States, with higher levels in Member States with energy-intensive industries;

6. Welcomes the fact that inflation has been brought down to the European Central Bank target level after reaching its peak level of 10.6 % in October 2022; notes, however, that inflation remains at different levels across the Member States, with higher levels in Member States with energy-intensive industries;recalls that high inflation rates in the EU erode the effectiveness of the MFF and the EU Recovery Instrument, NextGenerationEU, thereby further diminishing overall purchasing power;

Amendment 30

Motion for a resolution

Paragraph 7

Motion for a resolution

Amendment

7. Is concerned by the macroeconomic stability risks posed by rising housing prices across the Member States,in particular potential restrictions onlabour mobility and weakeningof the growth in productivity;

7. Is concerned by the macroeconomic stability risks posed by rising housing prices across the Member States, in particular sustained price increases and difficult access to housing; recalls that such trends can limitlabour mobility and slow down growth in productivity in the long term; criticises the fact that the lackof a consistent, predictable housing policy in some Member States, together with regulatory interventions that have created legal uncertainty, has aggravated market tensions and created obstacles to investment and the supply of affordable housing, which particularly affects young people and families;

Amendment 31

Motion for a resolution

Paragraph 7 a (new)

Motion for a resolution

Amendment

7 a. Encourages action to be taken to enable labour mobility by simplifying and digitalising professional qualifications, and improving social security coordination and pension portability, in order to boost medium-term growth, as stressed by the International Monetary Fund1a;

_________________

1a Kammer A.,'Making European Reforms a Success on the Ground: Leveraging the EU's production hubs while leaving no one behind', International Monetary Fund, 13 November 2025.

Amendment 32

Motion for a resolution

Paragraph 8

Motion for a resolution

Amendment

8. Notes that on average the employment rate in the EU has reached a record-high level; welcomes the integration of the social convergence framework into the joint employment report of the European Semester;

8. Notes that on average the employment rate in the EU has reached a record-high level; welcomes the integration of the social convergence framework into the joint employment report of the European Semester;regrets the large differences in unemployment rates between Member States, particularly with regard to young people; emphasises that intergenerational fairness must become a structural component of the European Semester;

Amendment 33

Motion for a resolution

Paragraph 11

Motion for a resolution

Amendment

11. Expresses concern over the fact that the RRF is coming to an end in 2026 and over the impact that this might have on the EU's overall fiscal stance;

11. Stresses the success of the RRF model in linking EU funds to structural economic reforms, thereby boosting the solidity of the EU economy; expresses concern, however,over the fact that the RRF is coming to an end in 2026 and over the impact that this might have on the EU's overall fiscal stance, as well as the negative impact it will have on investment; recalls that the RRF was designed to be a one-off instrument to address the economic crisis in the wake of the COVID-19 pandemic; recalls, furthermore, that the debt issued to finance the RRF is to be repaid by 2058 in a manner that ensures the steady and predictable reduction of liabilities;

Amendment 34

Motion for a resolution

Paragraph 12 a (new)

Motion for a resolution

Amendment

12 a. Highlights the importance of country-specific recommendations (CSRs) as the cornerstone of EU economic policy coordination; recalls that CSRs are policy actions that are also an integral part of the medium-term fiscal structural plans, the national recovery and resilience plans, and the announced national and regional partnership plans (NRPPs); notes that despite the inclusion of CSRs under these frameworks, 33 % of CSRs show no or limited progress in the 2019-2023 period;

Amendment 35

Motion for a resolution

Paragraph 13

Motion for a resolution

Amendment

13. Notes the Commission's commitment to use the European Semester to promote competitiveness, sustainability and social fairness, as well as to integrate the UN Sustainable Development Goals and the European Pillar of Social Rights into the European Semester;

13. Notes the Commission's commitment to use the European Semester to promote competitiveness, sustainable economic growth, sustainability, equal opportunitiesand social fairness, as well as to integrate the UN Sustainable Development Goals and the European Pillar of Social Rights into the European Semesterin order to promote prosperity and employment; notes, however, that the CSRs remain compartmentalised under economic, social and environmental targets, with fiscal and economic policy priorities being detached from the other two components; calls on the Commission to better integrate social and environmental policies within fiscal and economic policies to align public resources, including the EU budget, with the green transition, in line with the recommendations of the Coalition of Finance Ministers for Climate Action;

Amendment 36

Motion for a resolution

Paragraph 13 a (new)

Motion for a resolution

Amendment

13 a. Recalls that the European Court of Auditors has assessed the use of CSRs within the RRF in two special reports, in which, while recognising that the RRF supported the implementation of relevant CSRs, including milestones and targets, the European Court of Auditors noted the failure to bring about sufficient structural changes; reaffirms the European Court of Auditors' recommendation to ensure that the key challenges identified in CSRs are addressed, and to set out a robust results framework for assessing the adequacy of the measures;

Amendment 37

Motion for a resolution

Paragraph 14 a (new)

Motion for a resolution

Amendment

14 a. Stresses the importance of adherence to the rule of law by the Member States and, by extension, the rule of law conditionality mechanism; insists that Member States that consistently violate the rule of law should face financial consequences through the EU budget; calls, furthermore, for better alignment with the Commission's annual rule of law reports, in this regard;

Amendment 38

Motion for a resolution

Paragraph 16

Motion for a resolution

Amendment

16. Notes that CSRs are set to play a greater role in the next multiannual financial framework for guiding investment and reform at national and regional levels; is of the opinion that the selection of reforms and investments should be guided by their effectiveness in addressing the relevant CSRs for achieving a just transition towards a green economy; underlines that this process must be accompanied by stronger democratic scrutiny;

16. Notes that CSRs are set to play a greater role in the next multiannual financial framework for guiding investment and reform at national and regional levels; notes that the European Semester and CSRs are annual exercises, whereas the MFF and NRPPs are multiannual instruments; highlights the fact that this mismatch raises concerns regarding coordination, efficiency and the risk of setting long-term priorities, investments and reforms on the basis of annual and short-term recommendations; emphasises that the design of reforms and investments must be conducted using a bottom-up approach at the appropriate governance level, ensuring ownership by local and regional authorities and the Member States, while ensuring continuity and predictability for managing authorities and beneficiaries; stresses that reforms should underpin investment and not undermine the long-term perspective of cohesion policy; isalsoof the opinion that the selection of reforms and investments should be guided by their effectiveness in addressing the relevant CSRs, in particularfor achieving a just transition towards a green economyand promoting social inclusion, with reforms and investments mutually reinforcing each other and increased policy coherence underpinning the drawing up of national and regional plans as set out in the Commission's proposal1a; underlines that this process must be accompanied by stronger democratic scrutinyand a transparent procedure involving local and regional authorities, social partners and other relevant stakeholders;

_________________

1a Commission proposal of 16 July 2025 for a regulation of the European Parliament and of the Council establishing the European Fund for economic, social and territorial cohesion, agriculture and rural, fisheries and maritime, prosperity and security for the period 2028-2034 and amending Regulation (EU) 2023/955 and Regulation (EU, Euratom) 2024/2509.

Amendment 39

Motion for a resolution

Paragraph 16 a (new)

Motion for a resolution

Amendment

16 a. Notes that the Commission envisages that the NRPPs submitted by Member States should effectively address all, or at least a significant subset of, the challenges identified in the context of the European Semester; calls on the Commission to clarify this linkage and to explain the implications this approach will have for the development, implementation and legal nature of the CSRs and the European Semester framework, and whether further actions will be needed to make the approach more democratic and transparent;

Amendment 40

Motion for a resolution

Paragraph 16 b (new)

Motion for a resolution

Amendment

16 b. Regrets the fact that the growing importance and potentially more binding character of the CSRs, when linked to the NRPPs, constitutes a significant increase in the Commission's discretionary power; underlines that there is currently no transparent or traceable methodology for developing and selecting CSRs, nor any clarity on why some are proposed and others not, which raises concerns regarding democratic accountability and equal treatment of Member States; calls on the Commission, in order to make the process more transparent and accountable, to clarify the underlying procedures and selection criteria, specify the internal decision-making processes, indicate which directorates-general are involved, and transmit this information to Parliament; underlines that any overall increase in the Commission's discretionary power must be accompanied by corresponding accountability mechanisms and a substantial improvement in the flow of information to Parliament;

Amendment 41

Motion for a resolution

Paragraph 16 c (new)

Motion for a resolution

Amendment

16 c. Calls for a stronger quantitative implementation of the European Semester framework through the introduction of common indicators and targets; praises, in this sense, the Digital Decade for establishing specific 2030 targets for Member States to meet;

Amendment 42

Motion for a resolution

Paragraph 17

Motion for a resolution

Amendment

17. Notes that the 2025 CSRs focus more on competitiveness and simplification; regrets the fact thatfewer CSRs are dedicated to social and climate policies;

17. Notes that the 2025 CSRs focus more on competitiveness and simplification, and that according to the Commission's own data,fewer CSRs are dedicated to social and climate policies;

Amendment 43

Motion for a resolution

Paragraph 18

Motion for a resolution

Amendment

18. Recalls that the Draghi report forcefully demonstrated the need to increase public and private investment to boost EU competitiveness;

18. Recalls that the Draghi report forcefully demonstrated the need to increase public and private investment to boost EU competitiveness;recalls that investments in renewables, energy efficiency and the circular economy are crucial for preserving the EU's strategic autonomy and competitiveness, and for addressing the cost-of-living crisis; recalls, furthermore, that according to the Draghi report, the European approach to competitiveness and innovation 'must ensure that productivity growth and social inclusion go hand-in-hand'; notes that some Member States have been able to increase their public investment expenditure thanks to better management of their public finances, while other Member States have struggled to support public investment due to narrow fiscal margins; is concerned about the gap in public investment, in terms of percentage of GDP, of up to 4.8 percentage points between EU Member States in 2025;

Amendment 44

Motion for a resolution

Paragraph 18 a (new)

Motion for a resolution

Amendment

18 a. Calls on the Member States to prioritise education as a key driver of productivity and growth; recalls that, according to the Commission's 2026 European Macroeconomic Report1a, sustained investment in education, training and lifelong learning is essential for Europe's long-term competitiveness and economic development; recalls that social investment policies can have significant positive effects on economic growth, productivity and competitiveness, thereby also supporting fiscal sustainability while fostering upward social convergence; recalls, furthermore, that for the first time, the Commission has proposed a Council recommendation on human capital, addressed to all Member States, calling for urgent actions to prioritise education and skilling and to reverse the negative trend in basic skills;

_________________

1a European Commission, '2026 European Macroeconomic Report', 25 November 2025.

Amendment 45

Motion for a resolution

Paragraph 18 b (new)

Motion for a resolution

Amendment

18 b. Recalls that, according to the Draghi report, most productive investments must be undertaken by the private sector, while public investment spending should play a catalysing role; stresses the importance of completing the single market and the savings and investments union to mobilise European savings as productive investments within the EU;

Amendment 46

Motion for a resolution

Paragraph 19

Motion for a resolution

Amendment

19. Calls for the establishment of other EU-wide investment capacities to maintainthe EU's capacity to make the necessary investments;

19. Calls for the establishment of EU-wide investment instruments to reinforcethe EU's capacity to make the necessary investments, while minimising the cost for EU taxpayers and maximising efficiency in the provision of European public goods; stresses that these instruments must focus on improving competitiveness, fostering innovation, strengthening European resilience and promoting upward convergence, and must be designed so as to spur private capital, remove barriers to the single market, improve regulatory efficiency and ensure that public resources are used responsibly; reiterates the need for sustainable and resilient revenue for the EU budget that matches the expenditure side; calls for the introduction of new own resources to finance the EU's policies; considers, therefore, that the introduction of new revenue streams is an essential condition for an ambitious 2028-2034 MFF;

Amendment 47

Motion for a resolution

Paragraph 20

Motion for a resolution

Amendment

20. Notes that the evolving geopolitical environment requires even more unity and solidarity among the Member States; supports the efforts made by the Commission to move towards a more coordinated approach to defence; notes that the Security Action For Europe (SAFE) instrument establishes a loan facility of EUR 150 billion to support Member States' investments in defence; regrets, however, the fact that the SAFE instrument was based on Article 122 TFEU, limiting parliamentary oversight;

20. Notes that the evolving geopolitical environment requires even more unity and solidarity among the Member States, and more efficient management of public resources; supports the efforts made by the Commission to move towards a more coordinated approach to defence; notes that the Security Action For Europe (SAFE) instrument establishes a loan facility of EUR 150 billion to support Member States' investments in defence; regrets, however, the fact that the SAFE instrument was based on Article 122 TFEU, limiting parliamentary oversight;welcomes the fact that the net expenditure indicator excludes all national co-financing in EU-funded programmes, providing Member States with increased fiscal space to invest in the EU's common priorities, as laid down in Regulation (EU) 2024/1263, thus helping to strengthen synergies between the EU and national budgets, reducing fragmentation and increasing the overall efficiency of public spending in some areas, such as defence;


ANNEX: DECLARATION OF INPUT

The rapporteur declares under his exclusive responsibility that he did not include in his report input from interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from representatives of public authorities of third countries, including their diplomatic missions and embassies, to be listed in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure[1].


INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION

Date adopted

28.1.2026

Result of final vote

+ : 18

- : 8

0 : 2


FINAL VOTE BY ROLL CALL
BY THE COMMITTEE ASKED FOR OPINION

18

+

PPE

Georgios Aftias, Isabel Benjumea Benjumea, Gheorghe Falca, Danuse Nerudová, Karlo Ressler, Hélder Sousa Silva

Renew

Fabienne Keller, Lucia Yar

S&D

Matthias Ecke, Jean-Marc Germain, Giuseppe Lupo, Nikos Papandreou, Birgit Sippel, Carla Tavares, Nils Usakovs

Verts/ALE

Ignazio Roberto Marino, Rasmus Nordqvist, Nicolae Stefanuta

8

-

ESN

Siegbert Frank Droese

NI

Thomas Geisel

PfE

Tomasz Buczek, Tamás Deutsch, Angéline Furet, Julien Sanchez

Renew

Engin Eroglu

The Left

Younous Omarjee

2

0

PfE

Jana Nagyová, Jaroslava Pokorná Jermanová

Key:

+ : in favour

- : against

0 : abstentions


INFORMATION ON ADOPTION BY THE COMMITTEE RESPONSIBLE

Date adopted

26.2.2026

Result of final vote

+ : 30

- : 15

0 : 3


FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE

30

+

PPE

Georgios Aftias, Isabel Benjumea Benjumea, Stefan Berger, Herbert Dorfmann, Marco Falcone, Christophe Gomart, Dirk Gotink, Michalis Hadjipantela, Sérgio Humberto, Fernando Navarrete Rojas, Ludek Niedermayer, Sirpa Pietikäinen, Andreas Schwab

Renew

Gerben-Jan Gerbrandy, Ludovít Ódor, Anouk Van Brug, Stéphanie Yon-Courtin

S&D

Matthias Ecke, Jonás Fernández, André Franqueira Rodrigues, Eero Heinäluoma, Aurore Lalucq, Nikos Papandreou, Evelyn Regner, René Repasi, Irene Tinagli, Lara Wolters

Verts/ALE

Damian Boeselager, Kira Marie Peter-Hansen, Marie Toussaint

15

-

ECR

Marlena Malag, Denis Nesci, Mariateresa Vivaldini

ESN

Siegbert Frank Droese, Rada Laykova

NI

Fabio De Masi, Fernand Kartheiser

PfE

Catherine Griset, Margarita de la Pisa Carrión, Erno Schaller-Baross, Auke Zijlstra

The Left

Manon Aubry, Gaetano Pedulla', Jussi Saramo, Pasquale Tridico

3

0

PfE

Jaroslav Knot, Tomás Kubín, Jaroslava Pokorná Jermanová

Key:

+ : in favour

- : against

0 : abstentions

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