Future of Funding: Insights on the European Semester 2026

A central focus of the ESSDE Working Group meeting on 25 September 2026 was the discussion on the European Semester 2026 and its implications for future investment in education, skills and workforce development. Representatives of the European Commission, DG ECFIN and EAC, education trade unions and education employers exchanged views on the latest economic and education policy developments, as well as on ways to strengthen the involvement of education social partners in the European Semester cycle for 2027. 

The discussion provided an overview of the key messages emerging from the Spring Package 2026, including the policy challenges facing Member States in areas such as competitiveness, labour market resilience, skills development and public investment. Particular attention was paid to the education-related findings of the 2026 Country Reports and Country-Specific Recommendations, which highlighted evolving priorities within the European Education Area (EEA). 

While several EEA 2030 education targets remain unchanged, including those related to basic skills, early childhood education, learning mobility and adult learning participation, ambitions have been raised for reducing early leaving from education and training and increasing tertiary attainment. New targets have also been introduced on top performance in basic skills, equity in education, and STEM participation across VET, tertiary education and ICT. It was highlighted that education and skills are now systematically reflected in the Country Reports and may lead to Country-Specific Recommendations, with basic skills and teacher-related challenges expected to feature prominently across Member States. 

The exchange highlighted concerns about growing skills shortages across Europe and the role of education systems in addressing them. ETUCE stressed that policy discussions focus excessively on labour and skills shortages without adequately addressing teacher shortages and the underlying challenges facing the education sector. Instead, insufficient investment in teacher education, low salaries and declining professional autonomy remain key factors affecting the attractiveness of the profession. ETUCE reiterated its view that investment in education should be treated as a strategic long-term investment and exempted from restrictive budgetary criteria within the EU's economic governance framework. 

However, the involvement of education social partners in the European Semester cycle remains critical. ETUCE representatives underlined the importance of ensuring that education trade unions are consulted in a transparent, meaningful and predictable manner throughout the process. Such engagement is essential to ensure that the experiences and expertise of teaches and education workers are adequately reflected in the analysis underpinning the Country Reports and Country-Specific Recommendations. Delegates stressed that timely and structured consultation would strengthen the evidence base of the Semester, improve the relevance of education-related recommendations and contribute to more effective policy implementation at national level.