How has the macro-economic imbalances procedure worked in practice to improve the resilience of the euro area?
Study
11-03-2020
This paper shows how the Macroeconomic Imbalances Procedure (MIP) could be streamlined and its underlying conceptual framework clarified. Implementation of the country-specific recommendations is low; their internal consistency is sometimes missing; despite past reforms, the MIP remains largely a country-by-country approach running the risk of aggravating the deflationary bias in the euro area. We recommend to streamline the scoreboard around a few meaningful indicators, involve national macro-prudential and productivity councils, better connect the various recommendations, simplify the language and further involve the Commission into national policy discussions.
Study
External author
Agnès BÉNASSY-QUÉRÉ, Guntram WOLFF
About this document
Publication type
Policy area
Keyword
- deflation
- documentation
- economic analysis
- Economic and Monetary Union
- economic policy
- ECONOMICS
- EDUCATION AND COMMUNICATIONS
- EP Committee
- EU institutions and European civil service
- EU policy - national policy
- euro area
- European construction
- EUROPEAN UNION
- FINANCE
- financial risk
- financial stability
- free movement of capital
- macroeconomics
- monetary economics
- monetary relations
- research report