On the MIP, the Commission decided: •  that France, Croatia, Portugal, Italy and Bulgaria have excessive imbalances, which require specific monitoring and decisive policy action. •  not to propose the activation of an excessive imbalance procedure (EIP) for any country, but the Commission did leave the door open to activate an EIP for France and Croatia in May.
These non-decisions might weaken the corrective arm of the Pact and undermine the debt rule. Moreover, they cast doubt on whether the governance framework can still play its role as anchor for confidence.