The macroeconomic imbalance procedure (MIP) legal framework consists of 2 pieces of legislation that were introduced as part of the 'six-pack' reform of economic governance in 2011.
- Regulation (EU) 1176/2011 on the prevention and correction of macroeconomic imbalances sets out the MIP procedure and applies to all EU countries covered by the MIP
- Regulation (EU) 1174/2011 on enforcement measures to correct excessive macroeconomic imbalances specifies a sanction mechanism to enforce MIP recommendations for euro area countries
The main treaty basis for MIP surveillance is Article 121 of the Treaty on the functioning of the European Union (TFEU), which provides the set of reasons for multilateral surveillance in the EU.
The legal basis for the mechanism enforcing Regulation 1174/2011 is Article 136 TFEU, in combination with Article 121 TFEU, which provides the grounds for strengthened surveillance and co-ordination for euro area countries.