1. MIP indicators fit for purpose presentation & discussion ESTP Course Luxembourg 10 December 2014 MIP TF

2. Outline AMR Statistical Annex 2015 Data sources Recent changes in methodology Impact on SA data Presentation of indicators

3. SA to 2015 AMR 4th round of MIP Eurostat in charge of SA production (1st time) Complete SA: 54 indicators for a total of 14,840 values Data presented by SB, year, indicator, country Introduction presenting the main statistical developments

4. Flashes per country

5. Data sources – Headline indicators

6. Data sources – Auxiliary indicators

7. Recent changes in methodology ESA2010 implementation R&D expenditure is now investment Expenditure on weapon systems is now investment Value of goods sent abroad for processing no longer impacts gross exports and imports More detailed analysis of pension schemes Financial activities will be described in more detail at the level of subsectors and instruments

8. Recent changes in methodology BPM6 implementation Goods for processing and services under merchanting will be recorded as manufacturing services Financial activities will be described in more detail at the level of subsectors and instruments Research and development is now treated as produced assets

9. ESA 2010 and BPM6: impact on SA Affected indicators: 10 out of 11 headline indicators 19 out of 28 auxiliary indicators For a total of 8120 values Twofold impact: Numerator and denominator/deflator

10. Flashes per indicator

11. Current Account Balance

12. CAB - Definition The MIP indicator is the three-year backward moving average of the current account balance expressed in percent of GDP [[(CA/GDP)t + (CA/GDP)t-1 + (CA/GDP)t-2] / 3]*100 based on Eurostat data from Balance of Payments Thresholds: -4% and +6%

13. CAB - Rationale Current Account is the major driver of net lending/borrowing of the economy. A high current account deficit indicates that the economy is borrowing (typically importing in excess of its exports) and it might lead to an unsustainable external debt position. In turn, a high current account surplus maybe considered worrisome when it reflects weaknesses in domestic demand.

14. CAB - Auxiliaries indicators Special attention to catching up economies Inward FDI flows in % of GDP Destination of capital flow is relevant: FDI inflows provide a relatively safe finance of Current Account deficits Net lending / borrowing in % GDP Current Account deficits can be financed by EU Structural Funds which are included under the Capital Account

15. 2004200520062007200820092010201120122013 BE3.72.92.31.90.80.0-0.7 -1.1-1.6 BG-4.7-7.8-11.9-18.1-22.0-19.1-11.2-3.4-0.70.4 CZ-5.4-4.0-2.7-2.4-2.8-2.9-2.6-2.7-2.4-1.7 DK3.03.63.42.92.42.53.94.95.76.1 DE2.63.55.05.86.2 5.85.96.36.7 EE-12.0-11.2-11.9-12.9 -7.1-1.51.4-0.1-1.2 IE-0.6-2.1-4.2-6.7-8.1-8.4-6.4-4.2-1.51.1 EL-6.3-6.7-8.3-11.2-13.6 -12.1-10.3-7.4-3.9 ES-4.0-5.4-7.2-8.8-9.5-8.1-6.3-4.3-2.5-0.7 FR0.80.40.2-0.1-0.4-0.7-0.9 -1.1-1.3 HR-5.8-5.2-5.4-6.4-7.6-7.1-5.1-2.4-0.8-0.1 IT-0.6-0.8-1.3-1.9-2.1-2.7-2.8-2.3-0.9 CY-3.7-4.4-6.0-8.2-11.5-12.7-12.1-8.0-6.7-4.0 LV-8.0-10.1-14.7-17.7-17.9-8.3-0.62.5-1.2-2.8 LT-6.5-7.1-8.4-10.7-12.7-7.9-3.7-0.7-1.8-1.2 LU9.510.211.310.79.28.27.16.86.35.5 HU-7.6-7.9-7.6-7.1 -5.0-2.50.11.02.2 MT-1.3e-4.3e-6.1e-5.5e-3.6e-2.5-3.9-1.90.94.0 NL5.36.98.17.86.85.45.67.28.79.8 AT2.22.02.42.83.93.73.32.42.01.4 PL-3.5-3.4-3.8-4.1-5.5 -5.2-4.7-4.6-3.3 PT-8.0-8.5-9.6-10.1-10.8 -10.9-8.9-6.1-2.5 RO-5.9-7.6-9.1-10.8-11.8-9.8-6.9-4.6 -3.3 SI-0.8-1.7-2.0-2.6-3.8-3.4-2.0-0.20.92.8 SK-7.2-7.4-8.1-7.2-6.4-4.7-4.2-3.4-1.80.2 FI6.24.54.23.63.32.71.80.5-0.8-1.7 SE6.15.06.77.98.67.86.85.9 6.1 UK-1.9-1.6-1.8-2.1-2.9-3.1-3.0-2.4-2.7-3.2 CAB – Statistical Annex

16. Current account balances of surplus/deficit countries as % of GDP CA % GDP BG, CZ, EE, IE, EL, ES, FR, HR, IT, CY, LV, LT, HU, MT BE, DK, DE, LU, NL, AT, FI, SE CAB – Evolution of external positions

17. CAB - Statistical issues 1.Impact of the new statistical methodology (BPM6) and effect on back data availability 2.Asymmetries between Countries (especially financial flows) 3.Inconsistencies with Current external balances (RoW) in National Account

18. CAB - Issues 1 Impact of BPM6 methodology (2013) 3.5 pp to 0.5 ppMT, HU, ES, FR 0.5 pp to 0 ppPT, CZ, PL, BE, RO, SE, UK 0 pp to - 0.5 ppEL, HR, IT, SI, DK, LT, FI, LU -0.5 pp to -3.5 ppDE, EE, AT, LV, IE Impact on 3 years average of Current Account balance as % of GDP Note: 3years BPM6 data for Bulgaria, Cyprus, Netherlands and Slovakia are missing.

19. CAB - Issues 1 CA back data availability (BPM6) Statistical Annex to the Alert Mechanism Report 2015

20. CAB - Issues 2 Asymmetries between Countries (505 & 555) (330) (200)

21. Relative size of inconsistency (BoP-RoW)/BoP EU* * Based on the Countries available (both BPM6 and ESA2010) CAB - Issue 3 The evolution of inconsistencies

22. BoP-RoW(BoP-RoW)/BoP CAB - Issue 3 National inconsistencies (2013)

23. CAB - Actions 1.Revision of thresholds to be discussed at LIME. Back data for BPM6 are being progressively collected from Member States 2.New methodological guidance embedded in BPM6 (such as incorporation of SPEs). 3.Efforts in further promoting the usage of the FDI network (for MS to reconcile specific transactions)

24. CAB - Actions 3.The results of the official 2014 BoP/RoW survey will be presented at the BoPWG in April 2015. 4.ECB will also carry out a similar exercise for Euro Area statistics. 5.Further monitoring work is planned to verify BMP6 actually delivers statistics more consistent with ESA2010.

25. Net International Investment Position

26. IIP - Definition The MIP indicator is the net international investment position expressed in percent of GDP IIP/GDP based on Eurostat data from Balance of Payments Threshold: -35%

27. IIP - Rationale As it is the stock counterpart to the current account balance it allows for a stock-flow analysis of external positions. Typically, highly negative NIIPs result from persistently high current account deficits. However, external imbalances can reflect other type of imbalances (e.g. excessive credit expansion). What determines the overall vulnerability of the external position of a country is not only its size but also the types of maturities of both gross assets and liabilities.

28. IIP - Auxiliaries indicators The objective is to qualify the amount of liabilities according to the impact on a country's vulnerability Net external debt in % GDP - annual data Focus on liabilities that require a repayment (excludes portfolio FDI, equity and derivatives) Inward FDI stocks in % of GDP These are relatively less risky and stable form of financing and increase less one country's vulnerability

29. 2004200520062007200820092010201120122013 BE 28.433.529.428.939.754.250.948.147.645.8 BG -30.1-44.1-58.0-81.1-98.4-101.8-95.4-85.9-78.2-76.2 CZ -28.2-26.9-32.3-38.7-38.2-44.0-46.1-45.3-46.1-40.1 DK -5.33.9-0.2-5.8-5.14.414.028.737.839.7 DE 10.721.027.926.525.534.035.433.734.742.9 EE -86.3-84.7-73.3-71.3-75.4-80.1-71.2-55.6-52.2-47.1 IE -17.9-24.5-5.3-19.5-75.6-92.4-88.0-112.2-112.0-104.9 EL -67.0-77.3-85.4-96.1-74.1-86.4-98.3-85.2-109.2-121.1 ES -51.9-55.6-65.8-78.1-79.3-93.8-89.1-91.4-90.0-92.6 FR -4.71.1 -1.5-13.3-14.1-8.5-7.5-11.3-15.6 HR -47.7-56.5-77.0-92.8-75.3-87.4-95.9-92.0-89.9-88.7 IT -16.7-17.7-22.8-24.1-24.7-26.1-24.7-23.4-28.6-30.7 CY 14.019.937.811.7-15.1-30.4-35.6-71.7-147.3-156.8 LV -47.0-55.6-64.2-69.2-74.1-82.4-81.9-74.4-66.8-65.1 LT -34.4-42.6-48.9-55.8-51.5-58.4-55.4-52.2-53.0-46.4 LU 116.1133.5140.5105.0158.8155.1153.6191.5207.2216.4 HU -83.9-92.5-95.5-88.9-102.7-116.1-109.4-106.7-94.1-84.4 MT 37.4e34.6e26.5e19.4e4.5e24.035.139.253.749.2 NL 3.7-2.63.2-6.04.216.724.534.145.831.3 AT -17.3-21.7-12.9-9.8-10.1-5.1-5.2-1.9-3.1-0.2 PL -41.6-42.5-45.7-50.1-56.3-58.8-65.2-62.7-65.4-68.0 PT -66.8-69.9-79.3-88.8-95.1-107.9-104.3-101.0-113.8-116.2 RO -26.4-29.5-36.2-47.1-52.5-62.0-63.8-65.6-67.3-62.4 SI -7.7-10.8-16.8-21.3-35.1-38.9-42.4-40.2-45.2-38.2 SK -39.9-48.6-53.5-51.5-57.4-66.7-63.1-65.5-64.1-65.1 FI -9.3-14.0-12.4-25.9-2.56.419.718.114.78.8 SE -24.9-20.6-2.110.4-1.50.62.9-9.2-9.0-10.8 UK -11.4-7.9-13.1-11.35.9-13.4-6.0-4.4-14.9-15.6 IIP – Statistical Annex

30. IIP - Statistical Issues 1.Impact of the new statistical methodology (BPM6) and effect on back data availability 2.Increased reporting requirements related to EU legal acts 3.little is known about the discrepancies observed between national IIP and NFAs (RoW) data

31. 35 pp to 8 ppLU, MT, FR, HU 8 pp to 0 ppES, CZ, PT, PL, SI, EE 0 pp to - 8 ppLV, RO, LT, AT, IT, EL, SE, DE, FI -8 pp to -75 ppUK, NL, CY Impact on Net International Investment Position as % of GDP Note: France is based on 2012 data. BPM6 data for Belgium, Bulgaria, Denmark, Ireland, Croatia, Slovakia are missing IIP - Issues 1 Impact of BPM6 methodology (2013)

32. IIP - Issues 1 IIP back data availability (BPM6) Statistical Annex to the Alert Mechanism Report 2015

33. IIP - Issue 2 Increased reporting requirements Since June 2014 national compilers are reporting additional detail of the Financial Account and International Investment Position also to Eurostat. Higher frequency (monthly), More components (IIP) and Higher breakdown (geo) Have resources been allocated to achieve this shift?

34. Relative size of inconsistency (BoP-RoW)/BoP EU* * Based on the Countries available (both BMP6 and ESA2010) IIP - Issue 3 The evolution of inconsistencies

35. IIP - Actions 1.Back data for BPM6 are being progressively collected from Member States. 2.Annual exercise of Quality Reports was suspended in 2014. A new template has been designed for the 2015 exercise and it now covers also IIP.

36. IIP - Actions 3.The 2014 BoP/RoW survey will include for the first time Financial Accounts but should not include stocks. 4.Further monitoring work is planned to verify BMP6 actually delivers statistics more consistent with ESA2010.

37. Real Effective Exchange Rate

38. Effective Exchange Rate Bilateral exchange rates do not move together, so we need some method to summarise the overall strength or weakness of a country’s currency The nominal effective exchange rate (NEER) is defined as the exchange rate of the domestic currency vis-à-vis other currencies weighted by their share in world trade Which currencies? What weights? Significance of the base year

39. NEER

40. Real Effective Exchange Rate Real effective exchange rate (REER) also takes account of price level changes between countries adjusts the NEER by the ratio of foreign to domestic inflation assess change in competitive position of a country relative to its competitors Example suppose currency of country A has depreciated over one year by 10% against currency of country B suppose inflation rate in A is 7% and in B is 2% then real depreciation (change in REER) is 10% - (7% - 2%) = 5% improvement in competitive position is 5%, not the 10% suggested by the NEER

41. REER - definition

42. REER definition How to compute REER? where, N stands for number of the competitor countries in the reference group w i is the overall trade weight assigned to the currency i D i and D j are the deflators for partner country i and country j e i,j is the nominal exchange rate of country i in terms of currency of country j

43. REER - rationale "REER often been found to be a statistically significant predictor of the incidence of economic crisis" Balassa-Samuelson effect Price and cost competitiveness Thresholds +/-5% for EA, +/-11% non EA

44. REER for MIP REER computed by EC – DG ECFIN: Real – deflated by HICP, ULC, GDP deflator, export prices, producer prices Effective – based on bilateral trade (42, 37, EU, EA) ER – X rates vs. USD Headline indicator 3y % change in REER vs. 42IC; HICP/CPI p.m. y-o-y Auxiliary indicators 3y % change in REER vs. EA; HICP/CPI 10y % change in ULC performance vs. EA based on REER's double export weights

45. REER - Data sources REERs – DG ECFIN; Price and Cost Competitiveness database Components: HICP/CPI Eurostat International Financial Statistics (IMF IFS); OECD Exchange Rates IMF IFS; ECB; ECFIN (before 1999) Unit Labor Cost indexes Eurostat Bilateral Trade IMF - Data on Trade (IMF DoT) GDP; export prices Eurostat

46. REER – economic interpretation

47. REER – Economic interpretation

49. REER – statistical issues Bilateral exchange rates Trade basis Trade weights Choice of deflators Coverage of trading partners

50. REER – statistical issues and actions Total trade - Current source - IMF; and Eurostat data? community vs. national approach (quasi transit) …and why not trade in manufacturing? …or trade in services? - Domestic supply (GDP, GVA…) - Frequency of weights updates - Chain linking method

51. REER – statistical issues and actions Coverage of trading partners ECFIN: EA18; EU28; IC37; IC42; BIS: broad index – 61; ECB: EER-39 Exchange rates Averages of daily data; USD vs. EUR Deflators Price/cost competitiveness HICP/CPI, GDP deflators, Export prices, ULCT ULCM? PPI?

52. REER – conclusion There is no single “all purpose” REER – Difficult trade-offs such as fit vs. quality – Awareness of statistical engine is crucial

53. Export Market Shares

54. EMS – rationale Three competitiveness indicator: REER CPI deflated – price competitiveness Nominal ULC – cost competitiveness Export Market Shares – broader view of competitiveness; export performance that cannot be explained by price developments geographical specialisation (trade openness) sectoral specialisation product quality and composition

55. EMS - rationale EMS is driven by: numerator effect denominator effect +83% in 1994-2007 multilateral trade liberalisation unilateral trade liberalisation of some emerging countries (e.g. China, India and Brazil) increased trade in services due to development of ICT

56. EMS – definition (1) Headline indicator 5y % change in share of total world exports p.m. y-o-y BoP data from Eurostat and IMF Threshold: -6% Auxiliary indicators 5y % change in share of Advanced Economies exports Eurostat and OECD data 1y % change in EMS in volume IMF data

57. EMS – economic interpretation

58. EMS – statistical issues Impact of ESA2010 implementation

59. EMS – economic interpretation

62. EMS – statistical issues

63. EMS – actions BPM6 – higher coverage in 2015 Global Value Chains – mapping international trade Input-output tables and gross trade Tradables / non-tradables

64. Unit Labour Cost

65. ULC - rationale monitors developments in cost competitiveness across EU MSs measures the average cost of labour per unit of output rise in an economy’s NULC corresponds to a rise in labour costs that exceeds the increase in labour productivity

66. ULC – definition (1) compensation of empl/no. of employees real GDP per person employed based on Eurostat data from National Accounts MIP indicator - percentage change over 3 years Thresholds: +9% for euro-area +12% non-euro-area ULC =

67. ULC – definition (2) 3 auxiliary ULC indicators:  Labour productivity – yoy % change  NULC – 10 years % change -Both based on Eurostat National Accounts  ULC based on REER for EA -Source: DG ECFIN

68. ULC – economic interpretation ULC 2000=100

69. ULC – economic interpretation

72. Wages per hour worked in manufacturing (in Euro)

73. ULC - actions Quality Adjusted Labour Index Total hours worked as input measure for analysing labour productivity changes over time is not adequate = assumes each hour worked has the same quality Combining social surveys with NA data

74. House Price Index

75. Eurostat Headline indicator:  year-on-year growth rate of the deflated HPI  Eurostat consumption deflator – to reflect the value of house prices relative to the whole consumption basket  Indicative threshold: +6%  Source: Eurostat (Price Statistics/NA) Auxiliary indicators:  3 years % change of nominal HPI  Residential construction as % of GDP The scoreboard indicator is calculated using the formula: [((HPIt / DEFLt ) – (HPIt-1 / DEFLt-1)) / (HPIt-1 / DEFLt- 1)]*100. Short overview:

76. Eurostat Traditionally, large movements in real assets market were associated with economic crises Booms and busts in housing markets affect real economy through a variety of channels => important source of macroeconomic imbalances Real asset prices are correlated with:  Large movements in monetary and credit aggregates  Household consumption(wealth effect)  Inter-sectorial substitution effect Economic rationale:

77. Eurostat Issues Past periods are not entirely covered (some series rather short, starting in 2009) 13 Member States had at least one missing value as of 10 October 2014 Data available for some past periods from other sources (NCB, ECB, BIS, OECD) For 9 Member States missing annual figures were backcasted by MIP Team (BG, EL, ES, CY, LT, LV, MT, AT, PL)

78. Eurostat House prices grow faster than consumer spending Source: Eurostat 2013: indicator flashes for 2 countries

79. Eurostat House Prices(deflated) 2008,2011 and 2013 (index 2000 = 100, u.o.i.) Source: AMR 2015

80. Private Sector Debt consolidated

81. Eurostat Headline indicator:  Expressed in % GDP (stock of liabilities at the end of the year)  Instruments: debt securities and loans (F3+F4)  Indicative threshold: +133%  Source: Eurostat (NA --> FA) Auxiliary indicator:  Private debt as % of GDP – non consolidated The scoreboard indicator is calculated using the formula: PSDt/GDPt * 100 Measuring the debt of the non-financial private sectors (non-financial corporations plus households and NPISH) Short overview

82. Eurostat Short overview Consolidated data:  Describe each sector as a single economic entity  Reflect the amount of funds that the sector receives from other sectors Financial derivatives: excluded since 2013  Improve data comparability  Capture liabilities contracted as funding sources Pension schemes: not included because of the heterogeneity of social protection systems across Member States

83. Eurostat Excessively high private sector debt implies risks for growth and financial stability and increases the vulnerability to economic shocks Private debt developments allow for an assessment of the private sector vulnerability to changes in the business cycle, inflation and the interest rate Economic rationale

84. Implementation of the new methodological framework in September, ESA 2010 Derogations were granted to Member States for transmission of data, mainly for earlier years and specific components Impact of new methodology Methodological aspects over 14pp BE, CY, LU 0pp to 14pp EL, LV, NL -15pp to 0pp CZ, DK, DE, EE, ES, FR, HR, IT, LT, MT, PL, RO, SI, SK, FI, SE, UK over -15pp BG, IE, HU, AT, PT

85. Eurostat Unavailable data: CZ, UK Source: Eurostat

86. Eurostat Private sector debt, % of GDP 2013

87. Private Sector Credit Flow

88. Eurostat Headline indicator:  Expressed in % GDP  Flow counterpart of private sector debt (net, along the year)  Instruments: debt securities and loans (F3+F4)  Indicative threshold: +14%  Source: Eurostat (NA --> FA) The scoreboard indicator is calculated using the formula: PSCFt/GDPt * 100 Consolidated data available in 2013 Financial derivatives: excluded since 2013 Short overview:

89. Eurostat High credit flows – practice indicates it as one of the best indicators to predict crises incidence early on, both in emerging ad in advanced economies Large credit fluctuations are often associated with:  Potential banking system vulnerabilities  Boom and bust cycles in asset markets  House price bubbles  Current account imbalances Economic rationale:

90. Implementation of the new methodological framework in September, ESA 2010 Derogations were granted to Member States for transmission of data, mainly for earlier years and specific components Impact of new methodology Methodological aspects over 3pp BE, EE, LU 0pp to 3pp CZ, DK, EL, ES, FR, IT, LT, MT, NL, PL, PT, SI, UK -2pp to 0pp BG, DE, IE, HR, LV, HU, RO, SK, FI, SE over -2pp CY, AT

91. Unavailable data: CZ Source: Eurostat

92. General Government Debt

93. Eurostat Headline indicator:  Expressed in % GDP  Indicative threshold: +60%  Source: Eurostat (GFS) The scoreboard indicator is calculated using the formula: GGDt/GDPt * 100 The outstanding amount of the debt is calculated from the following ESA 2010 categories: currency and deposits (AF.2) + debt securities (AF.3) + loans (AF.4) Short overview:

94. Eurostat Short overview: Maastricht Treaty definition: consolidated GGGD of the whole general government sector at nominal value, outstanding at the end of the year (EDP and SGP) GGD comprises central government, state government, local government, and social security funds Data for the general government sector are consolidated between sub-sectors at the national level

95. Eurostat Overall picture of the indebtedness of a Member State (important linkages between private sector debt and general government debt) A high level of general government debt increases the vulnerability of a Member State and weakens its room of manoeuvre to deal with crisis situations Economic rationale:

96. Implementation of the new methodological framework in September, ESA 2010 Derogations were granted to Member States for transmission of data, mainly for earlier years and specific components Impact of new methodology Methodological aspects over 4pp BE, IE, HR, AT 1pp to 4pp DK, CZ, FR, PT, FI, UK 0pp to 1pp DE, EE, EL, ES, IT, CY, LV, LU, HU, RO, SI, SK -1pp to 0pp BG, LT, MT, NL, PL, SE

97. Source: Eurostat

98. General Government Debt, % of GDP 2013

99. Total Financial Sector Liabilieties

100. Eurostat Headline indicator:  Expressed as year-on-year growth rate  Indicative threshold: +16.5%  Source: Eurostat (NA --> FA) Auxiliary indicator:  Financial sector leverage (debt-to-equity ratio) The instruments that are taken into account (ESA2010): F.2 - Currency and deposits F.3 - Debt securities F.4 - Loans F.5 - Equity and investment fund shares or units F.6 - Insurance, pensions and standardised guarantee schemes F.7 - Financial derivatives and employee stock options F.8 - Other accounts payable Short overview:

101. Eurostat Aims at measuring the evolution of the sum of all liabilities of the total financial sector to capture its linkages with the real economy A very broad measure of the expansion of the exposure to potential risks in the financial sector Good early-warning qualities Provides a fairly reliable basis for comparison among Member States The indicator is not specific to the business model of a specific subsector Economic rationale:

102. Implementation of the new methodological framework in September, ESA 2010 Derogations were granted to Member States for transmission of data, mainly for earlier years and specific components Impact of new methodology  a large majority of Member States do not show any change  for some the changes are very limited, mainly due to reclassification of units into the financial corporation. Methodological aspects

103. Eurostat Unavailable data: CZ Source: Eurostat

104. Non-financial Corporate, Household and General Government Debt 2013 compared to 2008(shaded) % of GDP Source: AMR 2015

105. Unemployment Rate

106. Eurostat Headline indicator:  Number of unemployed persons as a percentage of the labour force based on International Labour Office (ILO) definition  3 year backward average  Indicative threshold: +10%  Source: Eurostat (LFS) Auxiliary indicators: several auxiliary indicators introduced in 2013 The scoreboard indicator is calculated using the formula: [(UR)t + (UR)t-1 + (UR) t-2] /3 Short overview:

107. Eurostat Intended to monitor high and persistent rates of unemployment It might indicate a potential misallocation of resources and general lack of adjustment capacity in the economy Economic rationale:

108. Source: Eurostat 2013: indicator flashes for 14 countries

109. Unemployment rate 2008, 2012 and 2015 (forecast) Source: AMR 2015

110. What about your answers?

111. Questionnaire To what extend the indicator currently used in the context of MIP procedure explains imbalances in your country? To what extend the indicator (in terms of its source, data transformations and data quality) appropriately measures macroeconomic imbalances?

112. Discussion Imbalances in your country Does the current set of indicators used in the MIP context measure properly the imbalances in your country? What are the imbalances in your country? Are they similar to the ones observed in other EU countries? Do you have in your country a procedure/ a country specific set of indicators to detect imbalances? Is there any macroeconomic imbalance not detected by the SB?

113. Discussion Imbalances in the European Union Should we continue using the same scoreboard in the next MIP rounds? In your opinion, is there any new imbalance to arise? Social, financial, economic… ? global or only(!) European, Euro area specific? Current SB, does it serve well as an early detector of potential imbalances? What is not covered and should be added? Is it better to have separate SB for EA? Or maybe country specific?

114. Discussion Statistical soundness What is the quality of underlined data used in the MIP scoreboard? Would you use for MIP SB data compiled outside ESS? Composite indicator, would it be more descriptive? … or should we rather go for the investigations of micro data?