The European Semester is the framework for the surveillance and coordination of EU economic policies.
The European Semester has been running annually since 2011. It was introduced after the 2008 financial crisis and the subsequent eurozone debt crisis with the aim of strengthening EU economic surveillance, coordinating national budgetary and structural policies and addressing macroeconomic imbalances in the EU Member States. It allows the EU Member States to discuss their economic and budgetary plans and monitor their progress. It is also important that, within the framework of the European Semester, the European Commission analyses the economies of the Member States and prepares proposals for country-specific recommendations to the Member States in various economic policy areas as necessary, including fiscal issues, employment, research and innovation, energy, climate change, education and social issues.
Usually, an annual cycle of the European Semester lasts from November of the preceding year to October of the current year. In the autumn of the preceding year, the European Commission publishes the so-called European Semester Autumn package, within the framework of which the published documents provide proposals on common economic policy priorities for the next period, assessing the EU economy as a whole, including by carrying out an assessment of the macroeconomic imbalances in the Member States. In-depth examination reports are also prepared later for the Member States that have experienced deeper imbalances.
In the first months of the year, the Council of the EU discusses and adopts relevant decisions on the documents included in the European Semester Autumn package.
By the end of April, the EU Member States prepare and submit their fiscal structural plans or their progress reports to the European Commission. In the progress reports, the Member States provide information on how the objectives set by the national medium-term fiscal structural plan are being achieved, including how the net expenditure path set by the Council of the EU is being implemented, as well as inform about the investments and reforms carried out, and also about the progress of the implementation of the country-specific recommendations approved by the Council of the EU in the preceding year.
In the first half of the year, the European Commission collects information and assesses the progress of the Member States in implementing the fiscal structural plans and country-specific recommendations, including by way of so-called European Semester fact-finding missions in the Member States.
At the end of May or beginning of June, the European Commission presents the so-called European Semester Spring Package, which includes, among other documents, European Commission reports on each Member State (Country Reports) and proposals for country-specific recommendations for each Member State. Member States discuss the European Semester Spring Package documents in June. In July, the Council of the EU adopts relevant decisions on the documents included in the European Semester Spring Package, int. al. approves the country-specific recommendations for each Member State.
The most significant European Semester decisions are also discussed and approved at the European Council level.