Macroeconomic disruptions within the euro area are the cause of strong pressure on the common currency and the long persistence of the financial crisis that followed the subprime crisis. This has led to the need for early detection and monitoring of imbalances. Such imbalances regularly result in a loss of competitiveness, high current account deficits and an increase in government debt. – Based on this insight, it was decided in 2011 that the European Commission would prepare and publish an annual early warning report (scoreboard) in which all members of the EU – i.e. beyond the eurozone – would be assessed and ranked. The first early warning report was published in February 2012. It clearly shows that a worrying macroeconomic equilibrium situation prevails in several countries. Of course, the Commission only has the competence to identify imbalances. The respective early warning report does not contain any proposals on how to counteract any imbalances. – See bond spread, bail-out, ClubMed, disfunctionality, currency area, Ecofin Council, blackmail potential, euro bonds, common, European Monetary Fund, EMU bail-out, fiscal pact, early warning right, government spreads, debt repayment pact, European, imbalances, EMU internal, treaty compliance, growth promotion, growth differentials, currency area, optimal. – Cf. ECB Monthly Bulletin, June 2012, pp. 83 et seq. (legal and general aspects of the early warning report; results for the EU and EMU), ECB Annual Report 2012, pp. 63 et seq. (reduction of imbalances in EMU; overviews; references).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/