Europe

Defence, environment, universities: decisive EU recommendations

from our correspondent Beda Romano

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3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

BRUSSELS - There will be a wide variety of recommendations that the European Commission will present tomorrow as part of the traditional economic convergence cycle, the so-called European Semester. No longer mainly suggestions on public finance, but also more general indications concerning the environment, justice or universities. More than in the past, the country recommendations are important because the use of money in the next EU budget should depend on them.

What is the European Semester

The European Semester was born in 2010, in the wake of the 2008-09 financial crisis. The aim of the exercise has always been to better monitor the economic development of the member states, detect divergences in advance, and nip in the bud any drifts in public accounts. In the past, the focus was on the Commission's analyses and recommendations on deficits and debt, especially in the eurozone member states (because of the Greek case).

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While the scope of the country recommendations has been widening for some years now, a further quantum leap will be made this year. The reason is to be found in the budget proposal 2028-2034, presented by the Commission in the summer of last year (see Il Sole/24 Ore of 18 July 2025). Among other things, the EU executive suggested spending European money on the basis of National and Regional Partnership Plans, to be finalised with Brussels.

Italy 86.6 billion

The European Commission explained last July: 'The National and Regional Partnership Plans will be a tool for Member States and regions to propose investments, reforms and other targeted interventions (...) These plans will cover cohesion policy, social policy, the Common Agricultural Policy, fisheries and maritime policy, migration, border management and internal security. According to the proposal, Italia would receive EUR 86.6 billion.

In the eyes of Brussels, the country recommendations should contribute to the development of national plans, the purpose of which is ultimately to channel EU money to the Member States in the most efficient way. The issue is controversial and is currently being negotiated among the Twenty-Seven. Many countries (and also many regions) are afraid of losing leeway in the management of their economic policy.

Brussels' recommendations

Beyond the predictable call to keep public accounts under control (the deficit in 2025 was 3.1% of GDP), Brussels should suggest that Rome, among other things, prepare for structurally higher military spending; reduce environmentally harmful subsidies; make better use of private savings (11% of GDP in 2025); promote the commercialisation of university innovations; and further speed up the justice system.

The EU executive should also refer to the importance of strengthening collective bargaining, also to support wages; to fight against undeclared work; to improve government spending; to address shortages in the health professions in the face of an ageing population; to accelerate the electrification of the country, including through a reform of the licensing system; and to liberalise still-protected sectors.

In addition to the country recommendations, which, moreover, will have to be assessed and approved by the Council, the Commission will also publish economic reports on the individual member states tomorrow, as well as an analysis on the risks of macroeconomic imbalances. Meanwhile, still yesterday Brussels confirmed that it is working on the response to Italy's request for more budgetary flexibility in dealing with the energy shock.

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