CEMR-EPSU project shows local governments and social partners remain under-involved in shaping EU economic governance
The European Semester, introduced in 2010 to coordinate national economic, employment, and social policies across the EU, has become the backbone of EU economic governance. Its annual cycle guides Member States’ reforms and budgets under the Stability and Growth Pact and the Europe 2020 strategy. Yet, despite its importance, the role of local and regional governments (LRGs) and social partners in this process remains limited.
A joint project by the Council of European Municipalities and Regions (CEMR) and the European Public Service Union (EPSU), carried out between 2018 and 2020, examined how and why subnational actors are involved in the Semester. It assessed the rationale for their participation (“why”), the mechanisms used in different Member States (“how”), and the quality of this involvement (“how well”).
Findings suggest that while LRGs are increasingly acknowledged, their input often depends on existing national dialogue structures and the political will of central governments. Social partner organisations, particularly trade unions representing the local government sector, are even less involved, with national peak organisations rarely consulting their membership in depth before feeding into the process.
The project also highlighted good practices: more systematic consultations, stable structures for dialogue, and efforts to ensure that recommendations (Country-Specific Recommendations, or CSRs) reflect local realities. However, in many cases, LRGs and social partners have little influence over the drafting and implementation of National Reform Programmes (NRPs), undermining ownership of the Semester.
From a broader perspective, the research confirmed that EU recommendations are more likely to be followed when countries face strong market pressures, when reforms are tied to EU financial rules, or when smaller states seek EU legitimacy for their policies. But there is still a gap in understanding whether stronger involvement of LRGs and social partners leads to better implementation of reforms, a gap that future research should address.
The report concludes that the Semester can only be effective if it becomes more inclusive. To strengthen ownership and impact, national governments and EU institutions must ensure that local and regional governments, as well as social partners, are systematically and meaningfully involved in shaping and implementing economic and social reforms.
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Officer – Employment, Digitalisation and Public Services
