The Council of the European Union, meeting on 10 July 2026, adopted conclusions on the 2026 in-depth reviews under the Macroeconomic Imbalance Procedure (MIP). The conclusions confirm the imbalance status of several Member States, remove Greece, the Netherlands, and Sweden from the list of countries experiencing imbalances, and warn of slowing GDP growth and rising inflation in 2026 due to the Middle East conflict. The Council calls for full application of the MIP, including activation of the Excessive Imbalance Procedure where appropriate.
The conclusions, based on the European Commission's in-depth reviews, assess macroeconomic developments in Member States under scrutiny. EU GDP growth, after reaching 1.5% in 2025, is projected to slow in 2026, while inflation is expected to rise. Greece, the Netherlands, and Sweden are no longer considered to experience imbalances: Greece's high government and external debt and non-performing loans have receded; the Netherlands' household debt and current account surplus have lessened; and Sweden's real estate and private debt gravity has diminished. Italy, Hungary, and Slovakia continue to experience imbalances, with some improvements noted for Italy and Slovakia. Romania continues to experience excessive imbalances; its fiscal and current account deficits have diminished but remain significant, and cost competitiveness is still deteriorating.
House price growth accelerated in 2025, increasing overvaluation risks in various Member States. Government debt ratios increased in many Member States, remaining above pre-pandemic 2019 levels and expected to increase further. The banking sector remains healthy with strong capital ratios and high profitability, and non-performing loans are close to historical lows on aggregate.
The Council's conclusions serve as a formal assessment under the MIP, which aims to prevent and correct macroeconomic imbalances in the EU. The removal of Greece, the Netherlands, and Sweden from the imbalance list reflects improvements in their economic indicators. The warnings on growth, inflation, housing, and debt highlight ongoing vulnerabilities. The call for full application of the Procedure, including potential Excessive Imbalance Procedure activation, signals the Council's readiness to enforce corrective measures for countries with excessive imbalances, particularly Romania. The next steps will involve the Commission monitoring developments and possibly proposing further recommendations or procedures.