8th March 2014

Commission reviews macroeconomic imbalances and fiscal consolidation

The European Commission published its in-depth reviews conclusions regarding macroeconomic imbalances and fiscal consolidation. Commission Vice-President and Commissioner for Economic and Monetary Affairs Olli Rehn stated that Member States are making progress in their economic consolidation, however, the progress remains uneven and some Member States should accelerate their efforts. Macroeconomic imbalances are a result of a long-term evolution and will require strong political will to be tackled. These imbalances include large external liabilities or large current account surpluses. According to the Commission, Germany should strengthen domestic demand, Italy and France should continue reforms and fiscal consolidation, as well as Spain that needs to tackle social issues, as well. Among the 17 countries previously identified as experiencing imbalances, 3 experience excessive imbalances, namely Italy, Croatia and Slovenia. France and Slovenia were also identified to present risk in terms of budgetary plans and action under Excessive Deficit Procedure is set to be taken. The presented results of the in-depth review should provide an analytical base for the Member States as they prepare their medium-term fiscal plans for the European Semester economic coordination mechanism, which is to be concluded in June.

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Members of the American Chamber of Commerce in the Czech Republic