The Usefulness of the Scoreboard of the Macroeconomic Imbalances Procedure in the European Union: Potentials for Reform

Due to the financial crises in several EU member states, the EU has constructed a scoreboard of economic indicators to be used as an early warning system; future financial crises must be revealed at an earlier stage. The new scoreboard follows a ‘one size fits all’ approach, but research shows that country specifics makes early warning systems more accurate if they allow for different thresholds.