EC Will Not Take Corrective Measures against Croatia
The European Commission (EC) announced on 8 March it would not take corrective action against Croatia, as part of the macroeconomic imbalance procedure (MIP), after announcing earlier that Croatia falls among the EU countries experiencing excessive macroeconomic imbalances, along with Bulgaria, France, Italy and Portugal.
In April, Croatia is expected to present its national reform and convergence programmes, after which the EC will present its proposals for a new set of country-specific recommendations. The MIP is a surveillance mechanism which aims to identify potential risks that may affect the proper functioning of a member state, the euro area, or the European Union (EU), prevent harmful macroeconomic imbalances and correct the existing ones.
Those countries for which imbalances are seen as excessive would be subject to specific monitoring or could enter the Excessive Imbalance Procedure, which can eventually lead to sanctions for euro area member states.