Implementation of Macroeconomic Imbalance Procedure – State-of-Play (September 2016)

Please note: Each In-Depth Analysis is assigned a DOI (digital object identifier), which is a safe and long term way of ensuring a hyperlink to the full text of this report. However, when ESO creates this record, on occasion the DOI still has not been activated by the EU Bookshop. If you find the source url hyperlink does not work please use the alternative location hyperlink listed as a related url.This note prepared by the Economic Governance Support Unit within the DG for Internal Policies of the European Parliament presents the EU Member States' situation with respect to the Macroeconomic Imbalance Procedure (MIP) taking into account recent assessments and decisions by the European Commission, as well as documents published by other relevant European institutions.

This document is regularly updated. A separate EGOV note describes the MIP procedure.

Macroeconomic imbalances in one Member State, such as a large current account deficit or a real estate bubble, can have detrimental effects on other Member States. This eventuality became evident after the financial crisis. For this reason, the Macroeconomic Imbalance Procedure (MIP), which aims to identify, prevent and address the emergence of potentially harmful macroeconomic imbalances that could adversely affect economic stability in a particular Member State, the euro area, or the EU as a whole, was introduced in 2011. The MIP foresees the possibility of enhanced surveillance for countries identified with excessive imbalances named the Excessive Imbalance Procedure. The MIP is also endowed with an enforcement mechanism, under which euro area Member States under the EIP face the possibility of sanctions.

European Parliament: Directorate-General for Internal Policies of the Union: Publications available via the EU Bookshop http://bookshop.europa.eu/en/directorate-general-for-internal-policies-of-the-union-cbf.cKABstF7wAAAEjwYYY4e5K/

EP: EPRS: At a Glance, 2014: The Macroeconomic Imbalance Procedure http://www.europarl.europa.eu/RegData/etudes/note/join/2014/497768/IPOL-ECON_NT(2014)497768_EN.pdf

European Commission: DG Economic and Financial Affairs: Economic governance: Macroeconomic Imbalance Procedure http://ec.europa.eu/economy_finance/economic_governance/macroeconomic_imbalance_procedure/index_en.htm

Wikipedia: Macroeconomic Imbalance Procedure https://en.wikipedia.org/wiki/Macroeconomic_Imbalance_Procedure

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