Implementation of Country Specific Recommendations under MIP

IPOL

DIRECTORATE-GENERAL FOR INTERNAL POLICIES

EGOV

ECONOMIC GOVERNANCE SUPPORT UNIT

AT A GLANCE

Implementation of Country Specific Recommendations under MIP This note provides an updated overview of some elements related to the implementation of Country Specific Recommendations (CSRs) issued under the Macroeconomic Imbalance Procedure (see a separate EGOV note for details on the MIP procedure). Figures only refer to Member States experiencing macroeconomic imbalances, and are based on the implementation assessment performed by the Commission. For the Member States identified by the Commission as experiencing macroeconomic imbalances, CSRs under the Macroeconomic Imbalance Procedure (MIP-CSRs) are annually adopted and monitored (see also the document MIP implementation). The Commission assesses the implementation of CSRs in its annual country reports. These assessments enable a “stylized” comparison of the implementation over time, over legal basis and distinguishing Euro Area and non-Euro area Member States. In its assessment, the Commission applies the following categories: No progress: The Member State has neither announced nor adopted any measures to address the CSR. Limited progress: The Member State has announced some measures to address the CSR, but these measures appear insufficient and/or their adoption/implementation is at risk. Some progress: The Member State has announced or adopted measures to address the CSR. These measures are promising, but not all of them have been implemented yet and implementation is not certain in all cases. Substantial progress: The Member State has adopted measures, most of which have been implemented. Fully addressed: The Member State has adopted and implemented measures that address the CSR appropriately. Chart 1: Implementation of MIP-CSRs in 2012-2016 2012

2013

2014

2015

2016

Total MIP-CSRs

36

56

66

57

45

MSs experiencing Macroeconomic imbalances

12

13

14

16

13

It can be noted that:  The number of MIP-CSRs increased from 2012 to 2014 and decreased in 2015 and 2016;  The share of MIP-CSRs over total CSRs for MSs experiencing macroeconomic imbalances steadily increased: 49% in 2012, 72% in 2013, 75% in 2014, 87% in 2015 and 90% in 2016.  The share of fully or substantially implemented MIP-CSRs increased from 5% in 2012 to 7% in 2015, but decreased to 2% in 2016.  The share of MIP-CSRs with no or limited progress increased strongly: from 17% in 2012 to 58% in 2016. 7 August 2017

Authors: M. Ciucci and A. Zoppè, contact: [email protected]

PE 542.650

Chart 2: Implementation of MIP-CSRs in Member States (2013 - 2016)

Chart 2 shows the degree of implementation of MIP-CSRs in MSs since 2013. In 2016, six countries were experiencing excessive macroeconomic imbalances: BG, FR, HR, CY, IT and PT. Only France fully/substantially implemented a MIP-CSR, and Croatia did not implement any of its MIP-CSRs. These six countries are still experiencing excessive imbalances in 2017. Furthermore:  in 2016, only Finland and Ireland made some progress in the implementation of all their MIPCSRs;  Only six MSs among the nineteen that have experienced macroeconomic imbalances over 20132016 have fully/substantially implemented at least one MIP-CSR. Slovenia (3); Italy, Spain and the UK (2); Croatia and France (1). Table 1: Comparison of the implementation of MIP-CSRs in Euro Area/Non Euro Area MSs Progress

Euro Area

Full/Substantial

10%

Non Euro Area MSs 0%

Some

53%

37%

No/Limited

37%

63%

Full/Substantial

3%

0%

Some

46%

20%

No/Limited

51%

80%

2015

2016

Table 1 shows the comparison of the implementation of MIP-CSRs between Euro Area and non-Euro Area countries in 2015 and 2016. It appears that in 2016 the Euro Area Member States implemented CSR-MIPs more forcefully than non-Euro Area MSs, a situation that was observed also in 2015.

Table 2: Comparison of the implementation of MIP-CSRs and non-MIP-CSRs in EU MSs Progress

MIP-CSRs

Full/Substantial

7%

Non MIPCSRs 0%

Some

47%

39%

2015

No/Limited

46%

61%

Full/Substantial

2%

3%

Some

40%

46%

No/Limited

58%

51%

2016

Table 2 shows some figures that allow the comparison of the implementation status between the MIP-CSRs and the other CSRs (those exclusively related to the Stability and Growth pact or the so-called Integrated Guidelines) in 2015 and 2016. In 2016, MIP-CSRs seemed implemented less than non-MIP-CSRs, thereby slightly inverting the situation observed in 2015.

DISCLAIMER: This document is drafted by the Economic Governance Support Unit (EGOV) of the European Parliament based on publicly available information and is provided for information purposes only. The opinions expressed in this document are the sole responsibility of the authors and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged the publisher is given prior notice and sent a copy. © European Union, 2017

PE 542.650

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