The European Commission issues country-specific recommendations.

On 3 June 2026, the European Commission adopted the European Semester 2026 Spring Package. The policy guidance addressed to the Member States places a strong emphasis on enhancing the European Union’s competitiveness and strategic autonomy. In addition, it promotes economic and social resilience as well as European cohesion. Furthermore, the recommendations take due account of the need to ensure the long-term sustainability of public finances and the adequacy of social protection systems, while addressing the challenges arising from the current geopolitical environment.

Country-Specific Recommendations for Germany

A key focus of this year’s Country-Specific Recommendations for Germany is social investment. For the first time, policy guidance formulated at EU level on strengthening human capital has been translated into concrete country-specific recommendations for the Member States. In this context, the Commission places particular emphasis on investments in skills development and quality jobs. For Germany, the recommendations focus primarily on addressing labour shortages in the long-term care sector and on measures to increase the working hours of care workers. In addition, the Commission recommends improving the cost-effectiveness of long-term care services and enhancing the availability and quality of early childhood education and care, as well as all-day schooling.

As in the previous year, the Commission also criticises the high level of federal budget transfers to the statutory pension insurance scheme. It recommends limiting tax-financed transfers to the pension system and strengthening its long-term fiscal sustainability. As potential policy levers, it points to longer working lives as well as a broader uptake of occupational and private pension provision.

Within the framework of the Savings and Investments Union, additional funds from funded occupational and private pension schemes are expected to be made available to new and innovative companies in their start-up and growth phases. Further recommendations addressed to Germany include the time-bound design of measures to mitigate the impact of rising energy prices, the modernisation and digitalisation of public administration, and the reduction of dependence on fossil fuels.

Outlook on the Multiannual Financial Framework (MFF)

The European Commission, the European Parliament and the Council of the European Union are currently negotiating the next Multiannual Financial Framework (MFF) for the period 2028 to 2034. In the future, European funding is expected to be used in a more performance- and reform-oriented manner. This could mean that the reform proposals communicated now or in the future may become conditions for the disbursement of funds, for example under the European Social Fund.

Next steps

The Country-Specific Recommendations are now submitted to the Council of the European Union for adoption, with a decision expected by July. Subsequently, they are to be taken into account in the design of budgetary, economic, employment and social policies. Progress towards the objectives will be reviewed in the next European Semester cycle in 2027. It is already foreseeable, however, that long-term reform initiatives, for example in pension or long-term care policy, will not have been fully implemented by then. In order to support the implementation of the recommendations for Germany, the measures proposed by the Pension Commission could be helpful.