european-semester-documents-hungary

European Spring Package 2026

The European Semester is an annual exercise that coordinates the EU's economic and social policies. Based on the analysis conducted every year by the Commission, each Member State receives a set of Country Specific Recommendations (CSRs), where policy action is needed. In Hungary, these include:

Hungary's economic stagnation, inflationary pressures and fiscal imbalances risk widening the gap with regional peers in income convergence. Upskilling workers, simplifying business regulations, and reducing distortive taxes and subsidies would reignite growth and attract investment.
Above-EU-average electricity prices for companies, stemming from fossil fuel dependence, hinder competitiveness. Scaling up wind energy, modernising grids, and energy efficiency programmes would cut bills and boost security.
Unpredictable business environment, frequent regulatory changes and distortive sectoral taxes deter investment and stifle growth. Stable, transparent rules and streamlined permits would foster entrepreneurship and job creation.
Corruption risks persist, undermining trust and competition. Strengthening anti-corruption bodies, transparent procurement and better access to public information would level the playing field and improve competitiveness.
Education and skills gaps limit productivity with low STEM enrolment and teacher shortages limiting competitiveness. Targeted policies would align education with labour market needs
Low life expectancy and high preventable deaths reflect misallocation of funds in healthcare. Shifting funds to preventive care, expanding primary care access, and recruiting healthcare workers would improve outcomes.
Pension system risks grow as demographics shift. Ambitious reforms would ensure sustainability and adequacy.

European Semester Spring Package 2026 - Two-page summary

Country report

Published as part of the Spring Package, country reports provide a detailed analysis of each Member State’s economic and social developments and challenges and assess the extent these are addressed by national policies. Additionally, the reports review the implementation of country-specific recommendations from previous Semester cycles.

2026 Country Report - Hungary

Country-specific recommendations

Published as part of the Spring Package, the Country-specific recommendations (CSRs) provide tailored guidance to each Member State, suggesting socio-economic and fiscal policy actions to be taken over the next year. The Commission develops the CSRs based on the country reports and its review of the national policy plans submitted by Member States. The draft recommendations are then further discussed by the Council which reaches consensus on a final version over the summer.

The recommendations focus on policy areas that face persistent challenges or are only partially addressed by national policy plans. CSR can cover a wide range of topics, including public finances, pension system reforms, education, innovation challenges, job creation or addressing unemployment.

2026 European Semester:
Country Specific Recommendations / Commission Recommendations

Draft budgetary plan

By mid-October, eurozone Member States are required to submit their draft budgets for the following year to the Commission and the Eurogroup. The Commission assesses their compliance with the CSRs, the agreed net expenditure path and the requirements of the Stability and Growth Pact.

Draft budgets that do not align with past CSRs are addressed in the Opinions on the Draft budgetary Plans, published as part of the Autumn Package. Member States adopt their new national budgets at the end of the year.

Draft budgetary plans 2026

National reform programme (until 2023)

After receiving guidance from the Autumn Package, Member States submit their national policy plans for assessment ahead of the Spring Package. The national reform programme outlines the structural economic reforms that the Member State intends to implement, with a focus on future policies to strengthen employment and growth and prevent or correct macroeconomic imbalances. The programme should also indicate how the planned policies comply with the country-specific recommendations of previous European Semester cycles.

As of 2024, the national reform programmes will be replaced by the medium-term fiscal structural plans.

General publications (26 April 2023):
Hungary - National Reform Programme 2023