Based on the country reports and the Alert Mechanism Report, the European Commission has now decided in the further course of the European Semester, which States within the scope of the Macroeconomic Imbalance Procedure continue to show economic difficulties and therefore have to undergo a review. There was an all-clear in the case of Austria.

At the start of the European Semester, the Alert Mechanism Report identified 18 Member States, which from the point of view of the Commission show economic irregularities. These included for the first time Austria and Estonia. Now, with the help of an evaluation system, the European Commission has now divided all Member States affected between different categories: “No imbalances”; “Imbalances”; “excessive Imbalances”. Dependent on these stages, the Commission is able to apply more intensive review measures in case of excessive irregularities and impose unilateral sanctions if required.

However, there was an all-clear for six States, including Austria; following the review they are listed under “No irregularities”. Furthermore, four of them – Belgium, Hungary, Romania and the United Kingdom – are now in a position where they can leave Macroeconomic Imbalance Procedure. AK EUROPA reported already last week, which conclusions the Commission reached in its Country Report on Austria's economic situation.

Even though fewer States have to undergo a more detailed review, the Commission is concerned about high private and public debts, the vulnerability of the financial sector and the lack of competitiveness of some States. Special programmes shall be developed for those countries that show extreme irregularities, among them Bulgaria, Croatia, Portugal, France and Italy, if future policies are not adhering with the Stability and Growth Pact, which pushes States towards an austerity policy.

Further information:

Alert Mechanism Report

Macroeconomic Imbalance Procedure (available only in English)

MIP Reports (available only in English)

MIP Indicators (available only in English)