The macroeconomic imbalance procedure (MIP), which has been enshrined in the Stability and Growth Pact since 2011, is certainly well designed, but has not succeeded in either preventing or correcting these imbalances, as the process is “political rather than technical”, the European Court of Auditors observed in a report published on Tuesday 23 January.
“The systematic non-activation of the excessive imbalance procedure has reduced the credibility and effectiveness of the MIP”, said...