We examined the European Commission’s implementation of the Macroeconomic Imbalance Procedure, which aims to identify, prevent and address macroeconomic imbalances that could adversely affect economic stability in a particular EU country, the euro area, or the EU as a whole. We found that although the MIP is generally well designed, the Commission is not implementing it in a way that would ensure effective prevention and correction of imbalances.
The classification of Member States with imbalances lacks transparency, the Commission’s in-depth analysis despite being of a good standard has become less visible and there is lack of public awareness of the procedure and its implications. We therefore, make a number of recommendations to the Commission to substantially improve certain aspects of its management and to give greater prominence to the MIP.
Special report no 03/2018: Audit of the Macroeconomic Imbalance Procedure (MIP)