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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 Portugal, these include:

Portugal’s economy is growing steadily, but productivity lags due to low innovation, skills mismatches, and structural constraints in the business environment. Streamlining administrative processes, accelerating judicial procedures and cutting red tape would boost competitiveness.
Public finances are sound, with debt falling and a budget surplus in 2025. Addressing rising pension costs and maintaining a prudent fiscal policy would be essential for longer term fiscal sustainability.
The electricity mix is largely decarbonised — but transport and industry still rely heavily on fossil fuels. Electrifying mobility and scaling up clean industrial solutions could cut emissions further, enhance energy security and boost competitiveness.
Portugal is vulnerable to increasing climate risks (fires, floods), which requires actions on preparedness. Strengthening water management, forest resilience, and climate-proofing infrastructure would help protect both lives and critical infrastructure.
Housing costs are increasing rapidly, with prices outpacing wages. Expanding affordable and social housing, incentivising an efficient use of the housing stock, and repurposing vacant and derelict properties could enhance housing affordability and availability.
An ageing population and healthcare staff shortages underscore the need to ensure equal access to quality health and long-term care.
Despite a strong labour market, persistent skills mismatches and skills gaps of adults weaken productivity. Educational outcomes remain uneven for students from disadvantaged backgrounds.

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 - Portugal

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):
Portugal - National Reform Programme 2023