The in-depth reviews (IDRs) are analytical documents by the Commission aimed at identifying and assessing the severity of macroeconomic imbalances. The annual Alert Mechanism Report (AMR) selects the countries for which an IDR is prepared by the Commission. IDRs can also be prepared in case of unexpected significant economic developments that require urgent analysis.
Aim of IDRs
IDRs aim to identify the nature and severity of macroeconomic imbalances in EU countries. In its analysis, the European Commission takes into account existing Council recommendations and policy commitments of the country concerned. Since 2015 IDRs have been incorporated in the European semester’s country reports.
Result of IDRs
The Commission Communication accompanying the Country Reports includes the IDR results, which may be as follows:
- no imbalances
- imbalances
- excessive imbalances
- excessive imbalances with corrective action
A process of “specific monitoring” is applied to EU Member States with imbalances or excessive imbalances, which is adapted to the degree and nature of their imbalances and involves an intensified dialogue with national authorities, as well as progress reports and policy recommendations in their annual Country-Specific Recommendations. Countries found to be experiencing ‘excessive imbalances with corrective action’ are liable to face the Excessive Imbalance Procedure.
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