EU compiles black list of EU countries
Baku, February 14 (AZERTAC). The European Union has four countries on its `blacklist` that comprises the most vulnerable member states of the bloc. These are the economies where Brussels believes it is the most urgent to take corrective action, Italian daily Corriere della Sera cited a document awaiting publication as saying. On this `blacklist` Hungary shares the "shame" with Italy, Spain and Cyprus.
The document will be presented by Economic and Monetary Affairs Commissioner Olli Rehn in Strasbourg, the seat of the European Parliament on Tuesday, the paper said. The EU executive`s assessment is based on the evaluation of ten economic indicators that in many cases, e.g. labour costs, provide a fresh snapshot of economic realities.
This document is basically a warning, pointing to those countries that are most exposed to risks from macroeconomic imbalances.
As a response to the debt crisis that has been raging for two years, the EU has worked out new rules - the so-called six-pack-, a mechanism which came into effect last December that sends warning signals if an economy diverts to a wrong path and needs corrective measures to avoid sliding into a similar situation Greece is currently in. Hungary has now joined Spain, Italy and Cyprus on such a list.
There is also another list with countries that under observation, which has France, Belgium, Great Britain, Slovenia and Bulgaria on it.
This list was brought to life be the aforementioned six-pack already, which targets the strengthening of the Stability and Growth Pact via managing not only budget problems but macroeconomic imbalances and the underlying competitiveness problems too. Under the Excessive Imbalances Procedure (EIP) the Council may make recommendations for the member states, based on which it is obliged to come up with a corrective action plan. Based on this, the Council sets deadlines.
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