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The poor economic situation in Germany and nine other European Union countries could have negative consequences for the entire bloc, the European Commission warned in a report published on Wednesday.<\/p>\n
The “macroeconomic imbalances” in these countries raised concerns in the so-called Alert Mechanism Report and will now be analysed in greater depth, the commission announced in Strasbourg, France.<\/p>\n
“The EU is confronted with serious structural challenges which threaten our long-term prosperity,” said EU Economy Commissioner Valdis Dombrovskis.<\/p>\n
“Urgent action is needed,” he warned.<\/p>\n
The aim of the report is to detect and tackle such issues early on. Assessed indicators include the unemployment rate, debt levels, credit flows and property prices.<\/p>\n
Macroeconomic imbalances in one EU country – for example a high current account deficit or a real estate bubble – can have spill-over effects on other member states.<\/p>\n
The unusually high inflation of recent years, including increased labour costs and property prices, has taken its toll, according to the commission.<\/p>\n
In addition to Germany, which has long been seen as Europe’s powerhouse, Cyprus, Greece, Italy, Hungary, Estonia, Romania, Slovakia, Sweden and the Netherlands will also be analysed more closely in 2025.<\/p>\n<\/div>\n