Report from the Commission to the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank on the Alert Mechanism Report 2013, prepared in accordance with Articles 3 and 4 of the Regulation on the prevention and correction of macroeconomic imbalances

Persistent macroeconomic imbalances, reflected in large and persistent external deficits and surpluses, sustained losses in competitiveness, and the build-up of indebtedness, have been part at the core of the economic crisis and their current unwinding and adjustment shape the economic landscape. They continue to frame the macroeconomic challenges for the Member States concerned and involve spillovers which contribute to the threats facing the euro area. In December 2011, the "6-pack" entered into force, including the two regulations setting up the Macroeconomic Imbalance Procedure (the MIP).

Surveillance on imbalances under the MIP forms part of the 'European Semester' which takes an integrated and forward-looking approach to macroeconomic surveillance. The MIP was fully implemented for the first time in 2012. On 14 February 2012, the first step in the MIP was taken when the Commission published the first Alert Mechanism Report. On 30 May 2012 in-depth reviews for 12 Member States were published and concluded on the existence of macroeconomic imbalances in the 12 Member States reviewed. Appropriate policy responses to the identified imbalances were integrated in the set of country-specific recommendations issued by the Council in July under the European Semester.

The Alert Mechanism Report is the initial screening device whereby the Commission identifies Member States for which it considers that developments warrant further in-depth analysis to determine whether imbalances exist or risk emerging. It should be emphasised that it is not in the Alert Mechanism Report, but in the subsequent in-depth reviews that the driving forces behind the observed developments are analysed in detail. On the basis of the in-depth reviews, the Commission will conclude whether imbalances or excessive imbalances exist, and propose policy recommendations. The in-depth reviews are foreseen to be published in spring, ahead of the May European Semester package.

EUR-Lex: COM(2012)751: Follow the progress of this document through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2012:751:FIN

European Commission: SWD(2012)420: Completing the Scoreboard for the Macroeconomic Imbalance Procedure: Financial Sector Indicator http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SWD:2012:0420:FIN:EN:PDF

European Commission: SWD(2012)421: Statistical Annex http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SWD:2012:0421:FIN:EN:PDF

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