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The EU’s Macroeconomic Imbalance Procedure (MIP) aims to prevent and correct the build-up of economic imbalances in Member States.
The process starts with the Alert Mechanism Report
prepared by the European Commission. This is a comprehensive analysis of the economic situation in each Member State that includes a scoreboard of early warning indicators. The Commission also works with Member States to identify and correct policy failures and to adopt policies that support balanced growth, job creation and financial stability. Correction of excessive imbalances is ensured by the Excessive Imbalance Procedure, which for Member States that use the euro may ultimately lead to sanctions, if the repeatedly fail to meet their obligations.
Currently, 16 out of the 28 EU Member States are subject to an in-depth analysis of macroeconomic imbalances. To find out more:
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