The European Commission said on Wednesday that 11 European Union states were experiencing economic imbalances that should be addressed and from among these Italy, Cyprus and Croatia had “excessive” imbalances.
The EU executive’s warning is part of the regular monitoring process of European economies and coincides this year with inconclusive elections in Italy on Sunday which delivered a hung parliament.
While the European economy is growing at a sound pace, some countries remain exposed to risks if they do not carry out structural reforms, the Commission said.
In the case of Italy, “high government debt and protracted weak productivity dynamics imply risks with cross-border relevance,” the EU executive said.
The Commission welcomed recent reform efforts, especially in the banking sector, by Italy’s outgoing government but noted that “the reform momentum has somehow slowed.”
Bulgaria, France, Germany, Ireland, the Netherlands, Portugal, Spain and Sweden are the other eight states that need to address economic shortcomings.
Slovenia has been removed from the list of countries experiencing imbalances.
