EC Steps Up Macroeconomic
Imbalances Procedure
for Bulgaria


Brussels, February 25 (BTA correspondent Nikolay Jeliazkov) -
The European Commission decided on Wednesday to step up the
Macroeconomic Imbalances Procedure (MIP) for Bulgaria, France
and Germany, said EU Commissioner for Economic and Financial
Affairs, Taxation and Customs Pierre Moscovici at a news
conference here.

He noted that until now Bulgaria was in a MIP for imbalances in
a certain area, however, the procedure now needs to be stepped
up. Bulgaria is experiencing excessive macroeconomic imbalances,
which require decisive policy action and specific monitoring.
In particular, the financial sector turbulence in 2014 has
raised concerns about the existence of banking practices in the
domestically-owned part, with potentially significant
implications for the financial sector and overall macroeconomic
stability. In addition, the still negative, albeit improving,
external position, corporate overleveraging and weak labour
market adjustment continue to pose macroeconomic risks and
deserve close attention, Commissioner Moscovici said, recalling
that the EC had warned about this last year.

Of the 16 countries identified in November as experiencing
macroeconomic imbalances, the Commission stepped up the
procedure for three countries: France, Germany and Bulgaria,
opened MIP for Portugal and Romania, deescalated the procedure
for Slovenia. The remaining 10 countries will see no change in
their status, the EC said.

The MIP is a surveillance mechanism that aims to identify
potential risks early on, prevent the emergence of harmful
macroeconomic imbalances and correct the imbalances that are
already in place. PK/MY









/МЙ/