Annexes to COM(2016)728 - Alert Mechanism Report 2017 (prepared in accordance with Articles 3 and 4 of Regulations (EU) No 1176/2011 on the prevention and correction of macroeconomic imbalances)

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dossier COM(2016)728 - Alert Mechanism Report 2017 (prepared in accordance with Articles 3 and 4 of Regulations (EU) No 1176/2011 on the prevention ...
document COM(2016)728 EN
date November 16, 2016
Annex which contains a wealth of statistics which have contributed to inform this report.
(2) See Article 5 of Regulation (EU) No 1176/2011.
(3) See, e.g, IMF, Fiscal Monitor, October 2016.
(4) Regulation (EU) No 1176/2011 (OJ L 306, 23.11.2011, p. 25).
(5) See ʽ2016 European Semester: Assessment of progress on structural reforms, prevention and correction of macroeconomic imbalances, and results of in-depth reviews under Regulation (EU) No 1176/2011ʼ - COM(2016) 95 final/2 -, 7.4.2016.
(6) See ʽ2016 European Semester: Assessment of progress on structural reforms, prevention and correction of macroeconomic imbalances, and results of in-depth reviews under Regulation (EU) No 1176/2011ʼ - COM(2016) 95 final/2 -, 7.4.2016. For the full set of country-specific recommendations adopted by the Council, including those that are MIP-relevant, see OJ C 299, 18.8.2016.
(7) A mechanistic reading of the scoreboard is ruled out by the MIP Regulation (Regulation (EU) 1176/2011). On the rationale underlying the construction of the AMR scoreboard and its reading see ʽThe Macroeconomic Imbalance Procedure. Rationale, process, application: a compendiumʼ (European Commission, 2016).
(8) Current account figures referred to here are on a national accounts basis.
(9) National accounts-based figure.
(10) The benchmark is derived from reduced-form regressions capturing the main determinants of the saving-investment balance, including fundamental determinants (e.g. demography, resources), policy factors and global financial conditions. The methodology is akin to the External Balance Assessment (EBA) approach developed by the IMF (Phillips, S. et al., 2013, ʽThe External Balance Assessment (EBA) Methodologyʼ, IMF Working Paper, 13/272), with no interactions for the variable capturing ageing effects and additional variables capturing the share of manufacturing in value added.
(11) IMF, World Economic Outlook, October 2016, Ch. 1.
(12) Foreign direct investment flows and liabilities are less susceptible to sudden stops or outflows than other forms of financial flows or liabilities, and equity liabilities entail lower risks than debt obligations as a result of potentially large valuation changes at times of crises.
(13) The text refers to developments up to 2016Q1, which may differ somewhat from what is suggested on the basis of scoreboard indicators, which relate to 2015.
(14) This indicator corresponds to the sum of persons who are: at risk of poverty (after social transfers) also called monetary poverty; or severely materially deprived; or living in households with very low work intensity. Persons are only counted once even if they are present in several sub-indicators. At risk-of-poverty are persons with an equivalised disposable income below 60% of the national median equivalised disposable income. Severe material deprivation (SMD) covers indicators relate to a lack of resources, namely the share of people experiencing at least 4 out of 9 deprivations items. People living in households with very low work intensity are those aged 0-59 living in households where the adults (aged 18-59) work less than 20% of their total work potential during the past year. No 2015 data are available for Ireland, Croatia, Italy and Luxembourg.
(15) There are breaks in the data series for Bulgaria, Estonia and Romania.
(16) Inequality as measured by the S80/S20 income quintile share ratio and by the Gini coefficient of equivalised disposable income. The former compares the income of those at the end of the top quintile with the one of those at the top of the bottom quintile of the income distribution. The latter is defined as the relationship between the cumulative shares of the population ordered according to their equivalised disposable income levels and the cumulative share of the equivalised total disposable income received by them: it is measured between 0, where income is distributed equally across the whole population and 1, where all of the countryʼs income is earned by a single person. The data show somewhat different paths for the two measures: the S80/S20 has decline less frequently than the Gini coefficient in recent years, but the S80/S20 had also increased less over the crisis.
(17) These countries are Bulgaria, Croatia, Cyprus, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal, Slovenia, Spain and Sweden.