Brussels (Brussels Morning Newspaper) – The EU Commission unveiled the second part of the European Semester Autumn Package, focusing on economic policy recommendations, macroeconomic imbalances, and employment resilience.
On 18 Dec 2024, the European Commission announced the second part of the European Semester Autumn Package. The European Semester delivers a well-established mechanism for coordinating the economic and employment guidelines of the Member nations. Since its opening in 2011, it has evolved into a well-established forum for consulting EU countries’ fiscal, economic, and employment approach challenges under a joint annual timeline.
The first part European Semester Autumn Package was introduced on 26 November and marked the first takeoff of the undertaking cycle under the new economic governance framework.
According to the EU Commission, the European Semester will persist in identifying socio-economic challenges and direct the policy action required to address them. For this objective, the 2025 European Semester cycle will enhance its analytical basis and reinforce the dialogue with Member nations and other stakeholders on substantial policy actions. Based on this, the European Semester Spring Package will deliver country-specific recommendations (CSRs) to dive into the major country-specific challenges recognised in the Country Reports.
What are the key objectives of the Second part of the package?
The second part of the package includes three elements, the first one is a proposal for a recommendation on the euro area economic policy for 2025. This element offers policy advice to euro area Member nations on matters that impact the functioning of the eurozone as a whole. This year’s euro area recommendation urges Member nations to work both individually, including via the enactment of their Recovery and Resilience Plans, and collectively within the Eurogroup to enhance competitiveness, promote economic resilience, and persist in ensuring macroeconomic and financial strength.
The second element of the package is the Alert Mechanism Report which functions as a screening instrument to identify potential macroeconomic inequalities that could affect the economy of individual Member nations or the European Union as a whole. It observes the beginning of the annual cycle of the macroeconomic imbalance system, emphasising which Member States need in-depth assessments to decide whether they are undergoing imbalances.
The third and last element of the package is the Proposal for a Joint Employment Report. It ensures that the European Union labour market stays extremely resilient. The 2025 Joint Employment Report holds a firm country-specific emphasis on employment, skills and social elements based on the regulations of the Social Convergence Framework, as expected in the new economic governance framework.
