College Highlights: Budget, Resilience, and a Competitive Europe

The European Commission presented a suite of major initiatives that together define the EU’s forward-looking agenda. From safeguarding water security to ensuring effective budgetary planning and delivering a resilient economic and social model, the College meeting covered four strategic pillars: the EU Budget for 2026, the Water Resilience Strategy, the latest update on the Recovery and Resilience Facility (RRF), and the 2025 European Semester Spring Package.

Budget 2026: Stability in Unstable Times

At the heart of the day’s announcements was the draft EU budget for 2026, proposed at €193.26 billion and complemented by €105.32 billion in estimated disbursements under NextGenerationEU. Built on the foundations of the recently revised Multiannual Financial Framework (MFF), the proposal reflects Europe’s need for stability and strategic investment in a context of war, inflation, and climate uncertainty. Priorities include sustained support to Ukraine through the Ukraine Facility, enhanced funding for migration management, security and defence, and continued investment in competitiveness and green and digital transitions. New flexibilities will also allow Member States to reprogramme cohesion funding toward emerging priorities such as water resilience, energy security and affordable housing.

The Water Resilience Strategy: Putting Water at the Centre of EU Policy

Water is increasingly scarce and Europe is not immune to the effects. The Commission’s new European Water Resilience Strategy presents over 30 actions aimed at restoring the water cycle, modernising infrastructure, reducing leaks, and making Europe a leader in smart water management. With five of the top ten global risks for businesses now linked to water, the strategy offers a vision to protect a vital resource while unlocking competitiveness and innovation. It sets the goal of improving water efficiency in the EU by at least 10% by 2030 and launches new investment and research tools, including a Sustainable Water Advisory Facility and a European Water Academy.

Recovery & Resilience Facility: Final Push to the Finish Line

With over €335 billion still available, the Commission published updated guidance to Member States for the successful closure of the Recovery and Resilience Facility (RRF), which ends in 2026. All milestones and targets must be met by 31 August 2026, and final payments made by 31 December. The communication encourages governments to revise their national plans, focus on deliverable projects, and simplify their final payment procedures. The Commission will support the process and ensure plans remain aligned with RRF objectives. Notably, a proposal was also made to allow voluntary RRF contributions to the forthcoming European Defence Industry Programme (EDIP), further aligning recovery funding with strategic autonomy goals.

2025 European Semester: Reinforcing Competitiveness with Tailored Guidance

The Spring 2025 European Semester Package marks the first full year of macroeconomic coordination under the revised governance framework. It provides country-specific recommendations covering fiscal policy, implementation of RRF and cohesion programmes, and structural reforms, aligned with the Commission’s Competitiveness Compass. For the first time, the national escape clause of the Stability and Growth Pact has been activated to allow higher defence spending in 15 Member States without breaching fiscal targets. The package also takes stock of social convergence, labour market developments, and risks of macroeconomic imbalances. Romania remains under excessive imbalance surveillance, while Austria faces a recommended excessive deficit procedure.

From managing crises to preparing for future challenges, the College of Commissioners shows a clear intent: equipping Europe with the tools, investments and reforms needed to remain resilient, competitive and united.