The European Commission has adopted the 2026 European Semester Autumn Package, setting out economic and employment policy priorities to boost competitiveness.
In an increasingly challenging geopolitical environment, the Commission calls for coordinated action to strengthen productivity, innovation and investment, in line with the Competitiveness Compass. The Autumn Package launches the 2026 European Semester cycle, which will improve its analytical basis, strengthen dialogue between Member States and stakeholders and reinforce the focus on implementation.
The 2026 European Semester Spring Package will provide policy recommendations to tackle the main country-specific challenges identified in the Country Reports, building on a comprehensive set of 2025 country-specific recommendations.
This package builds on the Autumn 2025 Economic Forecast, which shows that the EU economy remains resilient with moderate growth mostly driven by robust domestic demand and investment, a solid labour market and easing inflation. At the same time, the EU is confronted with several strategic vulnerabilities and continues to face structural challenges, including low productivity, demographic pressures, and increasing demands on public finances linked to defence and the transition to a decarbonised and digital economy. Strengthening competitiveness and maintaining sound public finances will therefore be essential to unlock Europe’s growth potential and safeguard stability.
The Semester is reinforced with a new EU27 recommendation on human capital in view of the urgent need to increase productivity, boost talent and develop a future proof labour market.
Recommendation on human capital
For the first time, the Commission proposed a Council recommendation on human capital.
The new Recommendation is addressed to all 27 Member States and calls for urgent actions to tackle human capital related structural challenges that can damage our competitiveness. The recommendation therefore calls on Member States to prioritise education and skilling needed in strategic sectors for the EU economy, from clean transition, circular economy and industrial decarbonisation, health and biotech, agriculture and bioeconomy, to defence industry and space. It thus calls for stronger science, technology, engineering and mathematics (STEM) programmes.
It calls to reverse the negative trend in basic skills. This is essential to grow a future labour force with strong foundations to work and be trained in new tech and competitive industries.
Investment is a joint responsibility for businesses and public authorities alike. The Recommendation calls for public and private mobilization of resources to be invested in people. This is to the benefit of society, business, and people alike.
Proposal for a Joint Employment Report
The Commission’s proposal for a Joint Employment Report (JER) shows that labour markets remain robust overall. However, several structural weaknesses pose a risk to the EU’s global competitiveness and to social cohesion. This includes labour productivity, which shows a slow growth, and considerable labour and skills shortages.
The Joint Employment report includes the first-stage country analysis of the Social Convergence Framework, based on the Social Scoreboard. The analysis identifies risks to upward social convergence in nine Member States that are identified for a deeper analysis in spring 2026: Bulgaria, Greece, Spain, Italy, Lithuania, Lativa, Luxembourg, Romania, and Finland.
Next steps
The Eurogroup and the Council will now discuss the documents presented in the European Semester Autumn Package, with the view to endorsing the guidance offered.
The Commission will engage in constructive dialogue with the European Parliament on the contents of this package, as well as on each subsequent steps in the European Semester cycle.
Related documents
Council Recommendation on Human Capital in the EU
This Recommendation is addressed to all 27 Member States and calls for urgent actions to tackle human capital related structural challenges that can damage our competitiveness.
Proposal for a Joint Employment Report
The report monitors the employment and social situation in the EU and the implementation of the Employment Guidelines in line with Article 148 TFEU. It also provides an overview of Member States’ recent policy measures in the labour market and social domains, and identifies related key priority areas for policy action. It maintains a strong focus on the implementation of the European Pillar of Social Rights.
Annexe – Proposal for a Joint Employment Report
Annexes to the proposal for a Joint Employment Report from the Commission and the Council.
