In the second step of the Semester, the European Commission publishes reports on each Member State to analyse their economic  and social situation, assess whether they are experiencing economic imbalances, and to review the progress made on implementing past policy recommendations.

In the first step of the European Semester last November, the European Commission laid out its policy priorities and recommendations; assessed the draft budgetary plans of euro area countries; and identified countries whose economic situation required further analysis to determine if they were at risk of experiencing imbalances that could prove harmful to their economies if not corrected.