The European Parliament has outlined its key economic, employment, and social priorities for 2026, urging smarter defence spending, stronger economic governance, and greater

efforts to combat poverty and social exclusion across the European Union.

In two resolutions adopted on Wednesday, Members of the European Parliament (MEPs) highlighted the need for balanced economic policies that protect social investment while ensuring fiscal stability.

Economic priorities: concerns over debt, growth, and inflation

In the first resolution—approved by 392 votes in favour, 219 against, and 18 abstentions—MEPs expressed concern about several economic trends across the EU, particularly rising public debt levels, sluggish economic growth, and persistent inflation.

Lawmakers also raised questions about the early use of “escape clauses” within the EU’s revised economic governance rules. These provisions allow countries to temporarily suspend fiscal rules during exceptional circumstances, but MEPs noted they have already been activated by some member states just a year after the rules took effect.

Another concern highlighted was the continuing tax gap—defined as the difference between expected and actual tax revenues—in several EU countries.

MEPs called on the European Commission to reconsider how Country Specific Recommendations (CSRs) are designed and implemented within the European Semester framework, the EU’s annual economic coordination process. They argued that these recommendations should be fewer in number, more targeted, and supported by transparent selection criteria—especially as they increasingly influence access to EU funding.

Parliament also warned that increased defence budgets should not undermine other EU policy priorities. While acknowledging member states’ commitments to strengthen defence capabilities, lawmakers stressed that defence spending does not automatically boost long-term economic productivity. For this reason, they cautioned against financing defence investments through increased debt in the long run.

Social and employment priorities: stronger focus on social rights

In a second resolution—adopted by 404 votes in favour, 208 against, and 20 abstentions—MEPs emphasized the importance of placing social objectives at the heart of EU economic governance.

They called for the full implementation of the European Pillar of Social Rights and for its action plans to become central benchmarks within the European Semester assessments.

Parliament also proposed establishing a dedicated budget of at least €20 billion for the European Child Guarantee initiative aimed at reducing child poverty. Under the proposal, member states would need to allocate at least 5% of their European Social Fund Plus resources to tackling child poverty and improving children’s wellbeing. Countries with child poverty and social exclusion rates above the EU average would be required to allocate at least 10%.

MEPs welcomed the permanent inclusion of the social convergence framework within the European Semester but urged the Commission to update its “social scoreboard,” which tracks progress on improving social conditions across the EU. They stressed that in-work poverty should be treated as a key warning indicator within this monitoring system.

Finally, lawmakers underlined the importance of addressing the disability employment gap, expanding access to affordable housing, and strengthening policies aimed at reducing poverty across the European Union.

Together, the two resolutions signal Parliament’s intention to ensure that economic reforms in the EU go hand-in-hand with stronger social protections and inclusive growth in the years ahead.

Kira Peter-Hansen (Greens/EFA, DK), rapporteur on the report on economic priorities, said: “In this time of geopolitical turmoil and macroeconomic uncertainty, the European Semester remains absolutely vital for Europe’s economic stability, security, and prosperity. It is more important than ever that member states work together to achieve common objectives. In particular, it is crucial that we maintain a focus on the private and public investments that Europe needs to mobilise to achieve a more resilient, competitive and sustainable European economy.”

Nela Riehl (Greens/EFA, DE), rapporteur on the report on employment and social priorities, said: “The biggest levers for Europe’s economic and social future are located in national budgets. That is why the European Semester matters: we must coordinate how we invest to tackle Europe’s common challenges, from education and skills to quality jobs. Europe’s competitiveness will depend on our ability to invest in our future together.”