# CE2004078EN.01080801.xml

| 27.3.2004 | EN | Official Journal of the European Union | CE 78/808 |
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27.3.2004

EN

Official Journal of the European Union

CE 78/808

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(2004/C 78 E/0857)

WRITTEN QUESTION E-3392/03

by Christopher Huhne (ELDR) to the Commission

(17 November 2003)

Subject:   Economic monitoring

Subject:

| 1. | Will the Commission compare its monitoring of Member States' financial and economic performance each year, particularly its scrutiny of stability and convergence programmes, with the Article IV consultations and reports undertaken by the International Monetary Fund? |
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1.

Will the Commission compare its monitoring of Member States' financial and economic performance each year, particularly its scrutiny of stability and convergence programmes, with the Article IV consultations and reports undertaken by the International Monetary Fund?

| 2. | In particular, will it state: (a) how many trained economists are allocated to report specifically on each Member State and how that compares with the staffing of IMF country desks, (b) what is the length of stay and staffing of missions to Member States and (c) what is a typical programme of such a visit, indicating the seniority and responsibilities of those interviewed? |
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2.

In particular, will it state: (a) how many trained economists are allocated to report specifically on each Member State and how that compares with the staffing of IMF country desks, (b) what is the length of stay and staffing of missions to Member States and (c) what is a typical programme of such a visit, indicating the seniority and responsibilities of those interviewed?

| 3. | Will the Commission state whether it plans any changes or improvements in the manner of its monitoring in future? |
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3.

Will the Commission state whether it plans any changes or improvements in the manner of its monitoring in future?

Answer given by Mr Solbes Mira on behalf of the Commission

(19 December 2003)

(19 December 2003)

The Honourable Member refers to the practices and the resources associated to the follow-up of the economic and financial situation of Member States by the Commission in comparison with the International Monetary Fund.

| 1. | The Commission routinely compares the outcome of its monitoring of the economies of Member States (and Acceding States). In particular, the assessment of stability and convergence programmes, with the outcome of the economic surveillance undertaken by the Fund, specifically, the Article IV consultations. Based on such comparisons, the Commission contributes to coordinating the Union's position on Article IV Consultations on Member States and Acceding Countries. This activity includes (since the start of the Economic and Monetary Union (EMU)) the Article IV consultations on the euro-area. |
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1.

The Commission routinely compares the outcome of its monitoring of the economies of Member States (and Acceding States). In particular, the assessment of stability and convergence programmes, with the outcome of the economic surveillance undertaken by the Fund, specifically, the Article IV consultations. Based on such comparisons, the Commission contributes to coordinating the Union's position on Article IV Consultations on Member States and Acceding Countries. This activity includes (since the start of the Economic and Monetary Union (EMU)) the Article IV consultations on the euro-area.

| 2. | The number of trained economists in the Commission dedicated to the monitoring of the economic situation of individual Member States typically ranges from two (for the four largest economies) to one (for the other Member States). This would compare with a range from three to one in the geographical departments of the Fund. This number does not include either support staff (secretaries, assistants) or managerial staff (Heads of Unit and Director for the Commission, Heads of Division, Head of Department for the Fund).
  Concerning the Commission's missions dedicated to the specific follow-up of the economic situation in Member States, these include routine mission typically undertaken in connection with the Autumn and Spring forecasts and the preparation of the Report on the Implementation of the Broad Economic policy Guidelines, and ad hoc missions, undertaken on specific policy occasions (for example, in preparation of possible steps to be taken in the framework of the Excessive Deficit Procedure).
  The former typically include the economist(s) following the Member State in question and may or may not include the responsible Head of Unit. They last between one and three days. The programme typically includes meetings with the finance ministries, the Central bank and forecasting institutions, at operational and middle management level.
  The latter are typically headed by a Director (or the Director-General) and include the responsible Head of Unit and the economists following the Member State in question. They last between one and two days. The programme typically includes meeting with the finance ministries at senior management level.
  It needs to be noted that the resources and the contacts outlined above are supplemented, as far as the Commission is concerned, by the resources in the ‘horizontal’ (non-geographical services) and the contacts with officials from Member States on the occasion of official and unofficial meetings taking place at the seat of the European institutions. |
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2.

The number of trained economists in the Commission dedicated to the monitoring of the economic situation of individual Member States typically ranges from two (for the four largest economies) to one (for the other Member States). This would compare with a range from three to one in the geographical departments of the Fund. This number does not include either support staff (secretaries, assistants) or managerial staff (Heads of Unit and Director for the Commission, Heads of Division, Head of Department for the Fund).

Concerning the Commission's missions dedicated to the specific follow-up of the economic situation in Member States, these include routine mission typically undertaken in connection with the Autumn and Spring forecasts and the preparation of the Report on the Implementation of the Broad Economic policy Guidelines, and ad hoc missions, undertaken on specific policy occasions (for example, in preparation of possible steps to be taken in the framework of the Excessive Deficit Procedure).

The former typically include the economist(s) following the Member State in question and may or may not include the responsible Head of Unit. They last between one and three days. The programme typically includes meetings with the finance ministries, the Central bank and forecasting institutions, at operational and middle management level.

The latter are typically headed by a Director (or the Director-General) and include the responsible Head of Unit and the economists following the Member State in question. They last between one and two days. The programme typically includes meeting with the finance ministries at senior management level.

It needs to be noted that the resources and the contacts outlined above are supplemented, as far as the Commission is concerned, by the resources in the ‘horizontal’ (non-geographical services) and the contacts with officials from Member States on the occasion of official and unofficial meetings taking place at the seat of the European institutions.

| 3. | The Commission is continuously looking for ways to improve its monitoring of the economies of Member States. Concerning missions in particular, the Commission Communication on strengthening the co-ordination of budgetary policies (1) mentions explicitly the intention to organise more frequent and comprehensive missions. |
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3.

The Commission is continuously looking for ways to improve its monitoring of the economies of Member States. Concerning missions in particular, the Commission Communication on strengthening the co-ordination of budgetary policies (1) mentions explicitly the intention to organise more frequent and comprehensive missions.

1

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(1)  COM(2002) 668 final.

1

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