Report from the Commission – Alert Mechanism Report

Large and persistent macroeconomic imbalances - reflected in large and persistent external deficits and surpluses, sustained losses in competitiveness, the build up of indebtedness and housing market bubbles – accumulated over the past decade and were part of the root causes of the current economic crisis. They not only caused macroeconomic difficulties for the Member States concerned, but also serious spillovers which contribute to the threats facing the euro area.

This Alert Mechanism Report (AMR) marks the first step in implementing the new surveillance procedure for the prevention and correction of macroeconomic imbalances (hereafter called the Macroeconomic Imbalance Procedure – MIP). This report also contains the final design of the scoreboard of indicators.

Surveillance to prevent and correct macroeconomic imbalances under the MIP is a new instrument of the strengthened framework for economic governance in the EU. It was adopted as part of the so-called 'six-pack' governance package which inter alia also provides for a significant reinforcement of surveillance on fiscal policies. Surveillance on macroeconomic imbalances under the MIP forms part of the "European semester" which takes an integrated and forward looking approach to the economic policy challenges facing the Union in ensuring fiscal sustainability, competitiveness, financial market stability and economic growth.

EUR-Lex: COM(2012)068: Follow the progress of this document through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2012:068:FIN

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