The European Semester is a multiannual policy coordination process between the European Commission and EU Member States. Throughout the years, it has expanded to cover several policy areas, from strengthening social cohesion to maintaining fiscal sustainability. The Semester plays a crucial role in monitoring strategies such as the EU Action Plans on the Pillar of Social Rights, on the Social Economy, and likely for the future Circular Economy Act.
Since 2018, RREUSE has conducted an annual analysis of the European Semesterto evaluate the integration of social and circular economy considerations within EU Member States' Annual Progress Reports and the European Commission’s Country Specific Recommendations.
Our 2026 analysis positively reveals an important increase in social economy support compared to 2025. On the other hand, however, the number of supporting circular economy measures remained the same. We also noted some encouraging policies from several Member States to better support their social economy ecosystems while Italy and Slovenia announced new national social economy strategies to respond to the 2023 Recommendation on developing social economy framework conditions.
From the European Commission side, the 2026 country-specific recommendations largely advised Member States to improve labour market integration for at-risk categories. They also recommended that several countries foster a circular economy. Yet, the Recommendations continue a trend of omission of any reference to the social economy despite widespread societal challenges.
Based on the research results, RREUSE recommends five actions for EU and national policymakers to unlock the European Semester’s potential to support circular social enterprises:
Policy paper
