2026 European Semester ahead: What were the main challenges in 2025?

A few days ahead of the launch by the European Commission of the 2026 European Semester Annual Cycle, EASPD is pleased to announce the publication of its comprehensive report summarising the key findings from the 2025 Country Reports and Country-Specific Recommendations.
EASPD’s 2025 report presents the key insights from this year’s Semester, providing a clear overview of the priorities and obstacles faced by the 27 Member States.
By analysing these findings, the report not only reflects on the past year but also sets the stage for the challenges and opportunities that will shape the 2026 cycle and where progress from Member States will be awaited.
Understanding the achievements and gaps identified in the 2025 Semester is essential for stakeholders to engage effectively in the new cycle. Our report serves as a valuable resource for policymakers, service providers, and advocates as they prepare for the year ahead.
So, what were this year the main social trends and what key challenges countries will have to address:
- Ageing and demography: It is straining health and care systems, increasing notably the demand for long-term care, and reduces the workforce.
- Essential services: Shortages and uneven coverage – among others – in the healthcare and education sector, including ECEC, limit access and quality. Supported notably by EU funds, Member States are taking action to develop further childcare services, long-term care, community-based care, and mental health services.
- Labour market: Despite better performers, persons with disabilities are still severely prevented from accessing the labour market. Women also continue to face issues due to caregiving responsibilities.
- Skills: Countries face difficulties in developing an adaptable and skilled workforce, first and foremost in the green and digital, but also in the education and healthcare sectors. Investment in this field is a priority for all Member States.
- Housing: A surge in housing prices combined with a persistent lack of affordable housing supply and social housing has been recorded, pushing more individuals and families into poverty and exacerbating homelessness.
- Deinstitutionalisation: Several Member States are taking action to deinstitutionalise and move away from institutional care models.
- Disparities: These challenges affect unevenly regions and people. Persons with disabilities, children, older persons, women, single parents, Roma, and people born outside the EU or with a migrant background are the most at risk of poverty and social exclusion, unemployment and inadequate access to education, healthcare, and social services, notably in rural areas or overseas regions.
If you want to have an insight on your country, or more, read our report. For detailed information refer to the Country Reports, and the Country Specific Recommendations.