Institutional provisions for the foundation and implementation of the EU fiscal rules in the process of public finance management

Abstract

This note presents the EU Member States' situation with respect to the Macroeconomic Imbalance Procedure (MIP), taking into account the most recent assessments and decisions by the European Commission and the Council. It also gives an overview of relevant positions taken on the MIP by EU institutions. A separate EGOV note summarises the Macroeconomic Imbalance Procedure. This document is regularly updated. The implementation of the Macroeconomic Imbalance Procedure (MIP) is heavily affected by the pandemic, as is the whole European Semester, of which it is an integral component. The impact is on both the content and the timeline of the procedure. The Commission published the Alert Mechanism Report 2021 on 18 November 2020, thereby initiating the annual round of the MIP. The AMR is normally based on the MIP-Scoreboard, which presents data on 13 indicators that refer to the previous years and helps the Commission identify Member States at risk of macroeconomic imbalances. Chart 1: MIP scoreboard-Member States with values beyond the thresholds Source: EGOV based on 2021 AMR. Values for 2019. See also Annex 1 and Annex 3 to this document.