Alert Mechanism Report 2021

Summary:

Annual Alert Mechanism Report (AMR) published by the European Commission on 18 November 2020 as part of the Autumn Package of the 2021 European Semester.

Further information:

This AMR initiates the tenth annual round of the Macroeconomic Imbalance Procedure (MIP). The procedure aims at detecting, preventing and correcting imbalances that hinder the proper functioning of Member State economies, the Economic and Monetary Union (EMU) or the European Union (EU) as a whole, and at spurring appropriate policy responses. The implementation of the MIP is embedded in the European Semester of economic policy coordination to ensure consistency with the analyses and recommendations made under other economic surveillance tools.

This year's surveillance cycle of the European Semester, including the implementation of the MIP, was adjusted in light of the creation of the Recovery and Resilience Facility (RRF). The Annual Sustainable Growth Strategy (ASGS) took stock of the economic and social situation in Europe, set out broad policy priorities for the EU as well as provided strategic guidance for the implementation of the RRF.

The AMR analysis is based on the economic reading of a scoreboard of selected indicators, complemented by a wider set of auxiliary indicators, analytical tools and assessment frameworks and additional relevant information, including recently published data and forecasts. This year's AMR includes a reinforced forward-looking assessment of risks to macroeconomic stability and for the evolution of macroeconomic imbalances. The AMR includes also an analysis of the euro area-wide implications of the Member States macroeconomic imbalances.

The AMR identifies Member States for which in-depth reviews (IDRs) should be undertaken to assess whether they are affected by imbalances in need of policy action.

• Primary Source

Official

EUR-Lex: SWD(2020)275: Staff Working Document accompanying the Report - Statistical Annex of Alert Mechanism Report 2021 https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2020:275:FIN

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