On 23 June 2026, European Commissioner for Economy Valdis Dombrovskis presented the 2026 European Semester Spring Package to the European Parliament's joint ECON-EMPL committee, outlining country-specific recommendations focused on four priority areas: macroeconomic stability and fiscal sustainability, innovation and business environment, energy security and affordability, and employment and social fairness. The package also proposes broadening the scope of the national escape clause to allow Member States to dedicate up to 0.3% of GDP annually for energy security measures undertaken since February 2026, with a cumulative cap of 0.6% of GDP for the period 2026-2028.
Dombrovskis emphasised that the recommendations aim to structurally increase Europe's growth rate amid geopolitical uncertainty and global competition. On fiscal policy, he noted that 18 Member States have already used the national escape clause for defence spending, and urged that measures to support households and businesses from the energy shock be temporary, targeted, and not increase fossil fuel demand. The Commission assessed compliance with EU fiscal rules: for Malta, the Commission proposed abrogating its excessive deficit procedure (EDP) after its deficit fell below 3% of GDP; for nine other Member States under EDP (Belgium, France, Italy, Hungary, Austria, Poland, Romania, Slovakia, Finland), procedures can be held in abeyance, though Hungary's net expenditure growth is projected above the corrective path, prompting a reassessment in autumn. Ten Member States (Czechia, Denmark, Germany, Estonia, Greece, Latvia, Cyprus, Portugal, Ireland, Sweden) are compliant, while Spain is compliant in 2025 but at risk in 2026. Six Member States (Slovenia, Lithuania, Luxembourg, Netherlands, Bulgaria, Croatia) deviate or materially deviate from net expenditure growth and are recommended to take corrective action. The Commission also prepared a report under Article 126(3) for Bulgaria, Germany, Estonia, Latvia, and Slovenia, proposing to open an EDP for Bulgaria. In-depth reviews assessed imbalances: Greece, the Netherlands, and Sweden no longer experience imbalances; Italy, Hungary, and Slovakia still experience imbalances; Romania still experiences excessive imbalances.
The speech contained concrete proposals, including the new energy security fiscal flexibility and specific EDP recommendations, but largely formalised existing fiscal assessments. The policy orientation shifts towards accommodating defence and energy security spending within fiscal rules, while maintaining pressure on non-compliant Member States. Stakeholder impact: EU Member States gain flexibility for energy security investments but face continued fiscal surveillance; EU taxpayers may benefit from stabilised public finances but could see higher debt if flexibility is misused; energy-intensive industries may benefit from lower energy costs if investments materialise; and EU institutions (Commission, Parliament) see their role in coordinating fiscal and energy policy reinforced. The importance score is 70, reflecting a significant policy development with moderate cross-sector impact. No prior coverage exists in the last 180 days.