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 âexcessiveâ imbalances.
The EU executiveâs 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, âhigh government debt and protracted weak productivity dynamics imply risks with cross-border relevance,â the EU executive said.
The Commission welcomed recent reform efforts, especially in the banking sector, by Italyâs outgoing government but noted that âthe reform momentum has somehow slowed.â
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.