The European Commission adopted on June 3, 2026, the Spring Package of the European Semester, including proposals for Country-Specific Recommendations (CSRs), in which Research and Innovation is covered for 26 out of 27 Member States.
These recommendations, presented by the Commission, signal a continued and strengthened commitment by the EU to placing research and innovation at the heart of national economic strategies across Europe.
Broad coverage reflects shared priority
The comprehensive coverage of R&I in this year’s CSRs underlines the importance of R&I as a cornerstone of Europe’s competitiveness. Recommendations address a wide range of structural and investment challenges, from insufficient public R&D investment and weak academia-industry linkages to underdeveloped regional innovation ecosystems and administrative barriers facing researchers and start-ups.
The 2026 European Semester cycle provides a solid analytical framework for identifying future policy and investment needs across a wide range of areas, including those aimed at reducing economic, social, and territorial disparities. In this context, the 2026 Country Reports analyze economic and social developments in each Member State and assess the extent to which these countries have implemented the comprehensive set of country-specific recommendations adopted by the Council in 2025.
Fiscal surveillance under the Stability and Growth Pact
In spring 2026, the Commission has assessed Member States’ compliance with the EU fiscal framework. The assessment covers both 2025 and 2026 and focuses on the growth of net expenditure, considering the flexibility provided for by the national escape clause for defence, where relevant. As regards Member States under excessive deficit procedure (EDP), the Commission is today recommending to the Council to abrogate the excessive deficit procedure for Malta. For Austria, Belgium, Finland, France, Hungary, Italy, Poland, Romania and Slovakia, the Commission considered that effective action has been taken towards correcting the excessive deficit.
Assessing macroeconomic imbalances
Over the past year, vulnerabilities have evolved differently across Member States and have narrowed in several cases, while uncertainty has increased recently. Greece, the Netherlands, and Sweden are assessed as no longer experiencing imbalances as their macroeconomic vulnerabilities have declined over the years. Italy, Hungary and Slovakia continue to experience imbalances, as their vulnerabilities remain significant.
Slovakia continues to experience imbalances as vulnerabilities related to the external and government balances, competitiveness, the housing market, and household debt persist, with policy action remaining limited.
Closing the innovation gap
Some Member States took steps to boost research and innovation, as called for by the 2025 CSRs. However, progress remains limited and uneven across EU Member States and regions. With R&D spending stagnating at 2.2% of GDP in 2024, the EU lags behind global leaders in R&D intensity such as the US (3.4% of GDP), Japan (3.4%) or South Korea (5.0%) and, since 2020, it has been overtaken by China (2.6%). Still, positive developments were recorded in improving financing conditions for start-ups and scale-ups, for example in Austria, and Greece. Progress was also made in facilitating technology transfer and providing incentives for innovation and research in Czechia and Germany. Regarding scientific excellence, Ireland took measures to strengthen public R&D funding, although sustained increases are needed, while Estonia enhanced public support for applied research.
The net expenditure growth for R&D in Slovakia in 2025 is below the ceilings recommended by the Council in both annual and cumulative terms. In 2026, the annual growth rate of net expenditure is projected to be above the recommended ceiling, whereas the cumulative one is projected below. Therefore, after considering the flexibility provided by the national escape clause, Slovakia is assessed to be compliant with the recommended maximum growth rate of net expenditure in 2025, and it is projected to be compliant in 2026. At this stage, the Commission assesses Slovakia as having taken effective action.
The Slovak research and innovation landscape remains fragmented, and only limited progress has been made in improving cooperation between the business and research sectors. The research and innovation ecosystem lacks predictability due to an underdeveloped institutional framework without clearly defined responsibilities.
At the same time, it should be noted that small and medium-sized enterprises have limited opportunities to invest in research and development, as the current system of tax incentives for research and development is more focused on larger companies.
Numerous EU-level initiatives aim to further support efforts to close the innovation gap. These include e.g. the Startup and Scaleup Strategy, together with the launch of a EUR 5 billion Scaleup Europe Fund, and the envisaged European Research Area Act, which aims to strengthen the free circulation of knowledge, researchers and technology, as well as the upcoming European Innovation Act, which aims to boost deployment and commercialisation of innovation. As part of the next MFF, the proposed European Competitiveness Fund will mobilise private capital at scale. Through a close connection with Horizon Europe, it will support investment at all stages from research and innovation, through scale up and industrial deployment, to manufacturing. Member States should accelerate the uptake of artificial intelligence and other cutting-edge technologies such as quantum, cloud, high-performance computing, in line with the Apply AI and the AI Continent Action Plan. Together with the deployment of AI Factories and AI Gigafactories, the forthcoming Chips Act 2 and the Cloud and AI Development Act, will mobilise critical computing, data and infrastructure capacity and talent to secure Europe’s leadership in artificial intelligence and frontier technologies. Finally, Important Projects of Common European Interest (IPCEIs) are a powerful State aid instrument for cross-border projects driving innovation and fostering European competitiveness.
Across the 26 Member States concerned, the R&I recommendations cluster around five key priorities:
- increasing the level and efficiency of public R&D investment and fostering private investment in R&D
- strengthening public research systems
- fostering stronger collaboration between universities, research institutions, and the private sector
- fostering the commercialisation of research results
- enhancing startup and scaleup ecosystems
Next steps
The Commission proposals for the 2026 CSRs are to be discussed and adopted by the Council. The Commission looks forward to tracking progress as part of the ongoing Semester cycle and will engage actively and collaboratively with national authorities, the European Parliament, and stakeholders in the weeks ahead, working together to turn ambition into action.
Context
The 2026 European Semester Spring Package aims to build on the EU’s strengths through coordinated action to boost competitiveness, secure strategic autonomy, increase resilience, and strengthen preparedness while maintaining fiscal sustainability.
This initiative is in the line with the Competitiveness Compass, remains the guiding framework for his European Semester cycle. It builds on the vast potential of the single market, fosters macroeconomic and fiscal stability and aligns structural reforms and investments with the EU’s strategic priorities of closing the innovation gap, decarbonising our economy, reducing strategic dependencies, promoting skills and quality jobs, ensuring social fairness and cohesion, and simplifying the business environment.
The European Semester also helps member states address structural challenges and maintain macroeconomic stability and sound public finances.
Published 17.6.2026, slord