2022 European semester: spring package

SUMMARY OF:

Commission communication on the spring package of the 2022 European semester

WHAT IS THE AIM OF THE COMMUNICATION?

The 2022 European semester spring package aims to:

assist European Union (EU) Member States in broad economic and employment policy coordination;
ensure that joint efforts focus on delivering high-quality and ambitious recovery and resilience plans (RRPs);
analyse individual Member States’ resilience;
provide guidance to Member States to adequately respond to persisting and new challenges and deliver on their shared key policy objectives;
identify policy challenges and priorities on new and dedicated REPowerEU chapters in the RRPs, to reduce the dependency on fossil fuels through reforms and investments in line with the REPowerEU objectives.

KEY POINTS

The spring package includes:

country-specific recommendations (CSRs) and country reports for 27 Member States;
in-depth reviews for 12 Member States;
a report on government deficits;
opinions on Germany and Portugal’s draft budgetary plans;
the 14th enhanced surveillance report for Greece;
post-programme surveillance reports for Ireland, Spain, Cyprus and Portugal;
a proposal for a Council of the European Union decision on guidelines for Member States’ employment policies; and
a monitoring report on progress towards to the United Nations sustainable development goals in an EU context.

REPowerEU and the European semester

The EU economy was expected to continue growing in 2022 and 2023, but Russia’s war of aggression against Ukraine has created new challenges relating to energy security and fossil fuel dependency. However, the EU continues to show resilience in the face of these new circumstances.

REPowerEU is the EU’s plan to end dependency on Russian fossil fuels by fast-forwarding the clean transition and joining forces to achieve a more resilient energy system and a true energy union.

The adopted CSRs:

give guidance to Member States on responding to these new challenges and delivering on shared key policy objectives;
include guidance on new REPowerEU chapters in RRPs – key country-specific recommendations for 2022 to reduce fossil fuel dependency through reforms and investments in line with the REPowerEU objectives.

Country-specific reports and competitive sustainability

The 2022 spring package brings back country reports and CSRs, providing a snapshot of the existing and emerging challenges for Member States along the four dimensions of competitive sustainability – environmental sustainability, productivity, fairness and macroeconomic stability – and of the individual Member States’ resilience to tackle these challenges.

Fiscal policy

The fiscal guidance recommends mitigating the impact of rising energy prices, for vulnerable households in particular, being mindful of the measures’ potential impact on inflation and fiscal sustainability, and remaining consistent with the aim to reduce overall reliance on fossil fuels and shift fossil fuel imports away from Russia.

Energy and environmental sustainability

Recommendations include:

accelerating decarbonisation;
advancing the transition towards a circular economy;
reducing energy consumption and increasing the share of renewable energy;
addressing cumbersome administrative procedures that hamper the deployment of renewable energy projects.

Productivity

Ensuring a well-functioning single market remains key for productivity growth, economic prosperity and convergence. Ambitious reforms aimed at improving the business environment, administrative capacities and institutional resilience need to accompany additional investments. Effective and well-coordinated research and innovation instruments, together with further efforts to bridge the gap between innovation and market, are crucial to accelerate the green and digital transitions and reduce fossil fuel dependence in all Member States and regions. Investments in digital infrastructure and technologies are important to enable the green and digital transformation of our economies and societies and need to be complemented by investing in digital education and in people and their skills, including support for upskilling and reskilling.

Fairness

The European Pillar of Social Rights is the overall guiding framework to ensure fairness in the EU; its full implementation is crucial to achieving upward social and economic convergence. Access to quality education, adequate coverage by social safety nets and short-time work schemes are essential. In order to be most effective, supporting policies for vulnerable households should be temporary and targeted, while maintaining incentives to reduce the consumption of fossil fuels and containing their budgetary impact. Member States’ continued reforms and investments will be crucial to support quality job creation, skills development and smooth labour-market transitions.

Macroeconomic stability

In 2023, fiscal policy should be prudent, while standing ready to react to the evolving economic situation. To reduce risks produced by climate change, Member States are encouraged to systematically consider its implications in budgetary planning, with policies and tools that help prevent, reduce and prepare for climate-related impacts in a fair way. Member States are recommended to expand public investment for the green and digital transitions and for energy security, including by making use of the RRF, REPowerEU and other EU funds. Continuing to ensure public debt sustainability remains important for many Member States, and concerted efforts are being made to step up the fight against aggressive tax planning and tax evasion.

Conclusion

Tackling continuous and newly emerging challenges is crucial for the resilience of European economies and societies and for inclusive and sustainable growth. The 2022 European semester focuses on a sustainable and inclusive recovery based on the implementation of ambitious RRPs and the four dimensions of competitive sustainability.

In addition to continuing to implement the RRPs, Member States should take action to implement the 2022 CSRs, which reflect existing and emerging challenges, taking into account the REPowerEU plan.

BACKGROUND

For further information, see:

The European semester (European Commission)
European semester (Council of the European Union).

MAIN DOCUMENT

Communication from the Commission to the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank – 2022 European Semester – Spring Package (COM(2022) 600 final, 23.5.2022).