European Commission - Press release
European Semester 2016: fewer Member States have economic imbalances
than a year ago
Strasbourg, 8 March 2016
EU Member States are making progress in addressing imbalances in their economies.
They have also advanced in carrying out the country-specific recommendations issued last year,
although to varying degrees across countries and policy areas. These efforts are key in strengthening
the European recovery and fostering convergence. They also reflect the focus of this year's European
Semester: re-launching investment, implementing structural reforms and pursuing responsible fiscal
policies.
The Commission decided last November that 18 Member States merited in-depth reviews to assess
whether they were experiencing macroeconomic imbalances, and if so, how serious these imbalances
were. Of these countries, the Commission has concluded that six are not experiencing imbalances in
the framework of the macroeconomic imbalances procedure. Twelve are experiencing either
imbalances or excessive imbalances.
Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue, said: "The EU
economy is continuing its recovery and many Member States are making progress to address structural
problems of their economies. Fewer Member States than last year are considered to have imbalances.
Yet problems still persist and are a source of vulnerability for several countries. Structural reforms
need to be stepped up to make our economies more competitive. Member States need to continue
their efforts to reduce high public and private debt, address inefficiencies in the labour market, ensure
sustainability of social systems and improve the business environment, amongst others."
Commissioner Marianne Thyssen, responsible for Employment, Social Affairs, Skills and Labour
Mobility, said: "Although the situation varies from country to country, Member States are making
overall progress in bringing back unemployed people to the labour market, including young people. The
European Semester continues to drive Member States' reforms to help people back into jobs."
Commissioner Pierre Moscovici, responsible for Economic and Financial Affairs, Taxation and
Customs, said: "Today we can see clearly that those countries that have moved furthest and fastest in
reforming their economies are reaping the rewards of those efforts. Others need to raise their game if
they are to deliver more jobs and growth for their citizens. We have now put forward a detailed
diagnosis of each country’s challenges and I look forward to discussing these with national authorities
to support and encourage much-needed reforms."
As anticipated in the October 2015 Communication on steps towards completing the Economic and
Monetary Union, the Commission has made the implementation of the macroeconomic imbalances
procedure (MIP) clearer and more transparent by reducing the number of categories for imbalances
from six to four: no imbalances, imbalances, excessive imbalances andexcessive imbalances with
corrective action (excessive imbalances procedure).
From now on, all Member States that are found to have imbalances or excessive imbalances will be
subject to specific monitoring adapted to the degree and nature of the imbalances. This will enhance
the surveillance of Member States' policy responses through an intensified dialogue with the national
authorities, through missions and through progress reports. The chart in the annex below displays the
categorisations as of 2016.
Bulgaria, Croatia, France, Italy and Portugal are found to be experiencing excessive imbalances.
Finland, Germany, Ireland, the Netherlands, Spain, Sweden and Slovenia are found to be experiencing
imbalances.
Austria and Estonia, which had in-depth reviews for the first time this year, are deemed not to be
experiencing imbalances. Belgium, Hungary, Romania and the United Kingdom are found not to be
experiencing imbalances.
Next Steps
The Council is expected to discuss the Commission's findings emerging from the in-depth reviews
carried out for 18 Member States' economies.
In March and April, the Commission will hold further bilateral meetings with the Member States. These
meetings will provide an opportunity to discuss the country reports with the national authorities.
In April, Member States are expected to present their national reform programmes and their stability
programmes (for euro area countries) or convergence programmes (for non-euro area countries).
Based on all these sources, the Commission will present in spring its proposals for a new set of
country-specific recommendations, targeting the key challenges to be addressed. The
recommendations will also include fiscal guidance and be based on the Commission Spring Forecast
which will incorporate final 2015 budgetary data validated by Eurostat.
Greece and Cyprus, which are currently under stability support programmes, are not covered by
today's package.
Background
The early publication of these country reports is part of the efforts to streamline and strengthen the
European Semester, in line with the Five Presidents' Report and the steps announced by the
Commission to complete Europe's Economic and Monetary Union. Some of these steps were initiated
last year, and the practice is confirmed this year, in order to allow for a real dialogue on European
priorities, including euro area challenges, upfront at the start of the European Semester, and then to
give more time for dialogue with Member States and stakeholders at all levels to reflect on their
priorities. These reports also reflect the greater focus on employment and social considerations which
the Commission is bringing into the European Semester.
FURTHER INFORMATION
Communication
Memo
Country Reports
The start of the 2016 European Semester: The November European Semester package explained
The EU's economic governance explained
Alert Mechanism Report 2016
Winter 2016 Economic Forecast
IP/16/591
Press contacts:
Annika BREIDTHARDT (+ 32 2 295 61 53)
Audrey AUGIER (+32 2 297 16 07)
Annikky LAMP (+32 2 295 61 51)
General public inquiries: Europe Direct by phone 00 800 67 89 10 11 or by email
Attachments
Implementation of 2015 country-specific recommendations.pdf
Macroeconomic imbalances and government deficits.pdf
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