Audit of the Macroeconomic Imbalance Procedure (MIP)

Summary:

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.

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Official

ECA: News, 23.01.18: Macroeconomic Imbalance Procedure: Well-designed but not implemented effectively https://www.eca.europa.eu/en/Pages/NewsItem.aspx?nid=9527

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