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ALERT MECHANISM REPORT

The European Commission in 2012 on the basis of the EU Regulation 1176/11 launched the evaluation process of macroeconomic imbalances with a view to their early detection and early intervention. The evaluation process is based on eleven indicators of external and internal imbalances, which are published in the Alert Mechanism Report in November each year.

 

In the Alert Mechanism Report for 2017 the Commission highlights 13 EU Member States, for which the additional in-depth reviews are needed to determine whether they are faced with imbalances. It is the same countries in which the imbalances were identified in the previous round of in-depth reviews: Bulgaria, Croatia, Cyprus, Finland, France, Germany, Ireland, Italy, Netherlands, Portugal, Slovenia, Spain and Sweden. EC findings will be presented in the country reports in early 2017. The Alert Mechanism Report also assesses the progress towards the correction of macroeconomic imbalances, particularly in the euro area, based on the current repayment of internal and external debt, some long-term challenges in the banking sector, the dynamics of real estate prices and changes in the labor market, taking into account the social situation.

 

Alert Mechanism Report for 2017 shows that the situation in Slovenia is improving on all indicators that are part of the process of detection of macroeconomic imbalances. Positive steps have been recognizes in the labour market, increased market shares in exports and improvement in the situation in the financial sector. Among the 14 indicators Slovenia is outside the threshold only in the net international investment position, but also here the situation with regard to the previous year has improved, and in the general government sector debt - as 16 other EU member states. The Commission also notes that the debt to GDP ratio peaked in 2015 and will gradually decrease as a result of good management of debt in the future. Because of imbalances detected in March 2016, the European Commission will continue to monitor the development of macroeconomic developments in Slovenia and prepare an in-depth review in February 2017.

 

Alert Mechanism Report 2017

 

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