The European Commission monitors economic developments in the EU’s Member States and in the global economy in detail. It monitors for potential problems, such as risky or unsustainable policies or declining competitiveness, through:
- regular analysis of a broad range of national and international economic data
- forecasts for a wide-range of economic indicators such as GDP growth, inflation, and unemployment
- Draft budgetary plans
- National medium-term fiscal-structural plans
In addition, the European Commission produces two key economic reports that help to identify and address economic problems every year:
Published towards the end of each year, the Annual Growth Survey analyses the progress that the EU has made towards its long-term, strategic priorities, and provides an in-depth assessment of employment and macroeconomic trends. In this way, the Annual Growth Survey sets the priorities of the EU for the year to come.
The Alert Mechanism Report identifies countries that may experience imbalances, such as declining competitiveness or asset bubbles, which could prove harmful to individual Member States or the EU’s Economic and Monetary Union if not corrected.
These diagnoses are discussed among EU governments. Following that, an in-depth review is carried out for each of these Member States to analyse if an imbalance exists and to examine its origin, nature and severity.