The Multilateral Economic Policy Surveillance in the Activities of International Organisations, with Special Regard to the Practice of the IMF, the OECD and the EU

Abstract

The study analyzes and compares the international economic organizations’ multilateral monitoring mechanisms in the last 25 years. It demonstrates the usefulness, effectiveness of optimal monitoring, and it gives an analysis of each big institutions’ monitoring activities, their characteristics, strength and weakness, and their development. While the goals and monitoring standards of each institution vary significantly, there is potential for valuable cross-institutional learning. Currently, this exchange has been limited. The IMF and OECD employ evidence-based methodologies that provide an objective reflection of economic policies, functioning as diagnostic tools to support member states. The IMF improves through self-correction of past errors. Overall, both institutions’ monitoring is effective and valuable. The European Semester, the EU’s economic policy coordination tool established 15 years ago, falls short of major institutions’ quality and its effectiveness is questionable. It is a concern that the post COVID Recovery Fund (RRF) was also incorporated in the very problematic Semester process. The study identifies some key elements of the monitoring practice that could be transposed and applied to the Semester leading to the substantial improvement of the efficiency of the semester serving the long-term interests of all Member States, and the EU as a whole, including the strengthening of their competitiveness.