European Semester in 2021

The Slovenian presidency and the incoming French presidency presented a roadmap during the General Affairs Council that outlines the key steps of the 2022 European Semester, following the publication of the autumn package by the European Commission on 24 November 2021.

The key element of the autumn package is the 'Annual Sustainable Growth Survey', but it also includes the proposal for a joint employment report, the recommendation on the euro area, the alert mechanism report and the opinion on draft budgetary plans for euro area member states.

The aim of the roadmap is to ensure that all relevant Council configurations and their preparatory bodies work towards the preparation of the European Council in a coordinated and consistent manner.

• 2022 European Semester roadmap

 Following a temporary adjustment of the European Semester in 2020 and 2021 to address socioeconomic challenges brought on by the COVID-19 pandemic, ministers approved conclusions on the future of the European Semester in relation to the Recovery and Resilience Facility.

The conclusions call for the return of the essential elements of the European Semester in the 2022 cycle, in particular country reports and country-specific recommendations.

• The future of the European Semester in the context of the Recovery and Resilience Facility - Council conclusions, 9 November 2021

The Council adopted 27 recommendations on the updated stability and convergence programmes as part of the European Semester 2021 cycle.

The programmes reflect the continuation of the general escape clause and address the budgetary stances of member states in qualitative terms.

• Council adopts recommendations on the updated stability and convergence programmes (press release, 18 June 2021)

The Council examined a presidency report regarding the 2021 European Semester and the recovery and resilience plans. The report notes that policy support at national and EU level will be crucial for the recovery. It also stresses that the national recovery and resilience plans should become the main reference document on the member states’ forward-looking policy initiatives. The plans must encompass the national agenda of reforms and investments, be consistent with the relevant country-specific challenges and priorities identified in the context of the European Semester, be in line with EU policy objectives and focus on the green and digital transitions.

In view of the particular context of the pandemic and the need for continued adjustment to articulate the Recovery and Resilience Facility with the European Semester, the presidency presented an updated roadmap on the 2021 European Semester.

• Informal video conference of European affairs ministers, 23 March 2021

The Council approved conclusions on the 2021 Alert Mechanism Report. The report marks the starting point of the annual macroeconomic imbalances procedure. The report concludes that the COVID-19 crisis aggravated a number of existing macroeconomic imbalances in member states and is posing new risks. This highlights the need to make the best use of available EU support measures.

The Council also approved the draft Council recommendation on the economic policy of the euro area. The recommendation places a strong emphasis on the use of the Recovery and Resilience Facility, providing policy guidance on priorities that member states should include in their Recovery and Resilience Plans. The recommendation will be transmitted to the European Council in March for endorsement, prior to formal adoption by the Council.