Commission concludes in-depth reviews to identify macroeconomic imbalances and assesses progress in fiscal consolidation

EU News 95/2014

Brussels, 5 March 2014
IP/14/216

The European Commission has today published its conclusions emerging from the in-depth reviews (IDRs) carried out into 17 Member States' economies. In the same document, the Commission assessed progress in the correction of fiscal deficits in the Member States concerned, updating its opinions on Draft Budgetary Plans from last year. This is a key step in the now well-established European Semester of economic policy coordination, the yearly economic governance cycle through which the Commission works with the Member States to create the conditions for sustainable growth and employment based on sound public finances, in line with the Europe 2020 growth strategy.

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The economic recovery is gaining ground but challenges remain. Imbalances built up over more than a decade and it will require continued policy action to ensure that Europe returns to stronger but sustainable growth rates and steadily reduces unemployment. A number of imbalances are common to several Member States. Among the challenges are the large external liabilities in some economies, persistent large current account surpluses reflecting subdued domestic demand in a few countries, cost competitiveness for the countries which used to register the largest current account deficits and those experiencing large losses in export market shares. Improving competitiveness beyond cost-related factors is important for most Member States analysed, as is the impact of deleveraging on private consumption and investment. It will be essential to continue to address these imbalances in order to bring down the unacceptably high levels of unemployment in many parts of Europe.

Source and additional information:
http://europa.eu/rapid/press-release_IP-14-216_en.htm?locale=en

Olli Rehn Date: 05/03/2014 Reference: P-025165/00-02 Location: Brussels - EC/Berlaymont (C)EU, 2014 URL

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