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 Neven Mates, Member of the Court of Auditors, in a press release, adding: “during our audit, the Commission produced little evidence which would explain why the College [of Commissioners] did not propose the activation of an EIP”. Nor, he added, is there a formal decision-making process at political level in this area.
The EU auditors advise the Commission to activate the procedure once it has been established that a member state is facing these imbalances. The surplus in the German current account is often flagged up as an excessive imbalance. In its in-depth reviews, the Commission should also specify the gravity of the imbalances identified. (Original version in French by Mathieu Bion)