excessive imbalance procedure

What is excessive imbalance procedure?

excessive imbalance procedure definition and meaning on Finance terms:
Refers to the corrective arm of the macroeconomic imbalance procedure, which is initiated when excessive macroeconomic imbalances are identified in an EU Member State, including imbalances that jeopardise the proper functioning of Economic and Monetary Union. The procedure includes issuing policy recommendations, the preparation of a corrective action plan by the Member State concerned, enhanced surveillance and monitoring requirements and, in respect of EU Member States whose currency is the euro, the possibility of financial sanctions in the event of a failure to take corrective action. See also
Economic and Monetary Union (EMU)<


reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html