A stronger and more competitive Europe starts with implementation – turning the priorities Member States have already agreed into concrete reforms on the ground. Through the European Semester, the EU sets country-specific recommendations that are essential for boosting productivity, investment and sustainable growth.
Ceemet welcomes the objectives set out in the European Semester Spring Package, in particular the Commission’s commitment to strengthening economic resilience and fiscal sustainability, accelerating the clean‑energy transition and improving energy security, boosting research and development, and reducing barriers in the Single Market through genuine regulatory simplification. These priorities reflect long‑standing demands from industry. What matters now is that they are matched by action in the Member States.
“Restoring Europe’s competitiveness starts with implementing the European Semester recommendations.” Delphine Rudelli
Ceemet also welcomes the Commission’s renewed focus on investing in human capital by strengthening skills and education, which it views as indispensable for competitiveness and strategic autonomy.
At the same time, speeches and declarations are no longer enough. The Commission must translate its ambitions into concrete action, and it must do so quickly. Companies need pragmatic, targeted support, particularly when it comes to reducing administrative burdens. The European Semester itself illustrates the urgency: the economic context remains mixed, with growth forecasts for 2026 revised downward by 0.3 percentage points from the Autumn 2025 Economic Forecast projection (1.4%) to 0.9% in 2026 and 1.2% in 2027, from initially 1.2% and 1.4% for eurozone[1]; due to the energy shock and weaker economic activity. Productivity, investment and competitiveness remain structural challenges. While the Commission does not describe the EU economy as being in recession or systemic crisis, it argues that reforms can unlock growth and competitiveness. For MET companies, however, the situation is already far more severe.
Across the MET industries, companies are experiencing what they describe as a tangible recession. Growth expectations have become increasingly pessimistic, shaped by geopolitical tensions — particularly the conflict in the Middle East, which is keeping interest rates and energy prices high and prolonging political uncertainty. Ceemet economists agree that if the conflict continues, the sector is likely to face even stronger negative consequences in the second half of 2026 and throughout 2027. Significant differences persist between subsectors: electronics is showing signs of recovery, while automotive remains under pressure. Production continues to decline in Germany, grows only slowly in Belgium and France, and shows stronger momentum in Denmark and other Scandinavian countries, especially in electrical equipment.
MET industries underline that investment will eventually need to rise, particularly in energy efficiency and modernisation, yet current spending is largely limited to equipment replacement rather than expansion or technological upgrading. This trend is widely seen as a negative long‑term signal for Europe’s industrial base. MET companies are increasingly pessimistic because they have waited for years for a fully functioning Single Market, for genuine simplification, and for digital tools — such as e‑declaration systems — that have yet to be implemented.
The solution, in Ceemet’s view, is not to impose additional burdens on companies. The weight placed on industry has become unsustainable. Instead, the Commission should focus on ensuring that Member States effectively apply the recommendations outlined in the European Semester. These include the need to address skills shortages, support labour market participation, improve productivity and enable the green and digital transitions. This approach reflects a broader shift in EU thinking: social policy is no longer viewed solely as a redistributive tool but as a core component of long‑term competitiveness.
[1] European Commission, “ Spring 2026 Economic Forecast”, 2026