The excessive imbalance procedure (EIP) is an enhanced surveillance mechanism to ensure compliance with the macroeconomic imbalance procedure that can be activated for countries identified with excessive imbalances.
Under the EIP, the European Commission may recommend that the Council requires countries the submission of a corrective action plan detailing measures to address their challenges and a time frame for their execution.
These plans must be approved by the Council. The Commission and the Council monitor the implementation of the plans and the correction of the excessive imbalances, which is required to put an end to the EIP.
Euro area Member States that repeatedly fail to submit corrective plans considered sufficient by the Council or to implement them face the possibility of sanctions, including fines.
The Macroeconomic Imbalance Procedure (MIP) was introduced as part of the so called "Six-Pack" legislation that entered into force on 13 December 2011. The two MIP regulations contained in the "Six_Pack" are:
Regulation No 1176/2011 (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32011R1176) on details the procedure
Regulation No 1174/2011 (https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32011R1174) introduces the MIP enforcement mechanism