INTERNAL MARKET, INDUSTRY, ENTREPRENEURSHIP AND SMES - Strong focus on productivity, competitiveness, the Single Market, and Europe’s transition to net-zero in the freshly adopted European Semester Spring Package

On 24 May, the Commission adopted the European Semester Spring Package. Whilst energy market tensions have eased, and the EU economy has shown resilience in a challenging economic environment following Russia’s aggression against Ukraine, the package very much comes at an essential time for Member States to sustain reforms and investment momentum.

date: 22/05/2023

The package has a strong focus on productivity and competitiveness and the skills needed for the transition to a net-zero emission economy. This is also why the energy-related Country-Specific Recommendations (CSRs), introduced in 2022 for all Member States, have continued. These CSRs also address GROW policy areas such as the need to simplify permitting procedures for the deployment of renewable energy installations, energy efficiency of buildings, and sustainable transport. In addition to the CSRs, the package includes Country Reports for each Member State, a Chapeau Communication, the Employment Guidelines, and In-Depth-Reviews for selected Member States (aimed at identifying whether economic imbalances in areas such as competitiveness exist.

Following the introduction of the Recovery and Resilience Facility (RRF) and the adoptions of Member States Recovery and Resilience Plans (RRPs), the European Semester underwent considerable change, with Country Reports streamlined and with only a very limited number of CSRs per Member State to keep the focus on delivering on their RRP commitments.

In the 2023 Spring package, DG GROW ensured a good coverage of micro-economic, productivity and competitiveness aspects (in line with our areas of competence), and links to and coherence with key GROW initiatives, such as the Long-term competitiveness strategy, proposals for a Green Deal Industrial Plan (GDIP), the Net Zero Industry Act (NZIA), and the Critical Raw Materials Act (CRMA).

Work on the Spring Package started in the early autumn, with GROW colleagues drafting Annex 12 of the Country Reports, covering the Single Market and industry. Later in the process, we were also involved in drafting the Chapeau Communication, contributing to the Country Reports and drafting selected CSRs in specific GROW policy areas.

Following the adoption of the package, including its discussion in Council, the attention of GROW.E.5 colleagues will turn towards the next Semester cycle, kicked off by the Autumn Package, including the Annual Sustainable Growth Survey (ASGS), outlining the EU’s economic and employment policy priorities for the coming 12 to 18 months.

More information on the Spring package as well as links to all documents can be found on the following webpage.