Unprecedented pressures are forcing a rethink of the economic direction of the European Union. Geopolitical shocks, environmental transformation, the surge of artificial intelligence and demographic change are reshaping Europe’s path and its global role.

To respond, the European Semester must be further strengthened as an effective instrument for coordinated action, economic resilience, social fairness, and long-term competitiveness across the EU. 

The European Economic and Social Committee calls for an in-depth analysis and clarification on the relationship between the European Semester and the Competitiveness Coordination Tool and the forthcoming Multiannual Financial Framework. In this regard, the Committee stresses that it is imperative for national and European investments to be aligned with the EU’s shared ambitions.

The EU and its Member States face an increasingly demanding global environment. In designing the 2026 cycle of the European Semester, the European Commission has set a clear direction: reduce economic dependencies, strengthen competitiveness, and secure sustainable prosperity.

Delivering on this ambition requires far deeper coordination. Investment must be mobilised at scale, the single market strengthened, regulatory frameworks simplified and European businesses empowered to respond to unfair competition and persistent trade imbalances. At the same time, this must ensure that the EU moves forward on a path of socially fair and ecologically sustainable development.