Gross general government debt is expected to peak at 96% of GDP in the euro area this year vs. 106% in the US and 244% in Japan. Second, economic governance at European level has been improved by implementing the Macroeconomic Imbalance Procedure (MIP). The MIP has been set up to enhance surveillance, identify potential risks and correct existing imbalances.
This has been complemented by structural reforms which have been introduced at national level to address the serious gaps in competitiveness. This new procedure should be pursued with determination by the Commission to lend it much needed credibility. And again, things are moving in the right direction.