­interest in developing such value chains nation­ally. During this process, ad hoc public and tar­geted consultations of local stakeholders(e. g. in­dustry, research institutions, academia) are car­ried out by national and regional authorities to identify local stakeholders, inform them about the IPCEI process and evaluate the potential of the IPCEI based on industrial interest and readi­ness. However, the IPCEI framework also has some li­mitations. Because the Commission’s role in the ­IPCEI process is limited to authorising state aid, this lack of central coordination does not allow for a complete alignment with EU-level goals nor funding to be linked to the actual implementation stage. Additionally, the complex procedure associ­ated with developing IPCEIs require substantial ­capacities, which result in larger Member States leading, and potentially steering, the direction ­towards their national interests. This represents a risk for the functioning of the Single Market. 45 This experience suggests that greater involve­ment on the part of the European Commission in the CCT could facilitate better coordination and oversight. The CCT could support a larger scope of projects beyond highly innovative sectors, while maintaining alignment with EU objectives. EU Semester The EU Semester is a coordination tool that suc­cessfully enables Member States to converge to­wards common targets and objectives, while still leaving national governments autonomy with re­gard to the policies and reforms they will imple­ment to get there. The European Semester is the main framework set up by the EU to coordinate Member States’ economic, budgetary, employ­ment and structural policies. It has several key objectives: ensuring sound public finances, con­vergence and stability, and economic growth; preventing macroeconomic imbalances; and co­ordinating employment and social policies. Every year in autumn, the European Commission monitors the evolution of the EU economy to ­determine priorities for the year to come and as­sesses potential macroeconomic imbalances that risk breaching the Stability and Growth Pact. In the spring, the Commission then makes a series of non-binding Country-Specific Recommenda­tions(CSRs) tailored for each Member State on various issues such as education, employment or sustainable development. After their approval by the Council of the European Union, Member States then present national budget and reform plans taking into account these recommenda­tions. Since 2021, the European Semester has also been used to validate funding disbursements for the Recovery and Resilience Facility(RRF). The Semester helps balance pursuing EU prio­rities with flexibility for domestic priorities. The Semester process is also an example of multi­level governance, as it creates regular dialogue between the European Union institutions and national governments. 46 By coordinating EU-­level bodies, such as the Employment Commit­tee(EMCO) or the Social Protection Committee (SPC), it allows for knowledge sharing, the ad­justment of goals and guidance between the EU and national ministers. The Commission also organises bilateral meeting and fact-find­ing missions with national actors, creating feed­back loops. The involvement of other stakeholders has im­proved over time. For example, the Semester process was lengthened to allow national gov­ernments more time to involve stakeholders, and specific working groups were created to connect with social partners. 47 Still, the development of 45  Folkman, V.& Lausberg, P.(2025, May 13). Making IPCEIs a new vanguard for EU industrial policy. European Policy Centre. Retrieved on ­October 31, 2025, from https://epc.eu/publication/Making-IPCEIs-a-new-vanguard-for-EU-industrial-policy-650b30/. 46  Bekker, S.(2020). The European Semester: understanding an innovative governance model. In Research handbook on the politics of EU Law (pp. 67–81). Edward Elgar Publishing. 47  Eurofound.(2025). National-level social governance of the European Semester and the Recovery National social partners and policymaking series, Publications Office of the European Union, Luxembourg. https://data.europa.eu/doi/10.2806/2118040. 16 Friedrich-Ebert-Stiftung e.V.