Brussels warns on Spanish and Slovenian 'imbalances'

European Union Commission President Jose Manuel Barroso The European Commission says Spain and Slovenia must be swift to avoid deeper difficulties

The European Commission has warned that Spain and Slovenia must quickly tackle the imbalances in their economies.

Spain has already had its banking system bailed out and Slovenia is widely expected to become the next to ask for for a debt rescue.

The Commission said the pair are the worst of the 13 European Union countries currently under review.

It called on Spain to deliver a "decisive" reform programme by the end of the month.

The imbalances in debt, unemployment and growth were doing long-term damage, with more than half of under-25s unable to find a job, the Commission said.

"Our (European) citizens are still paying the price for the unchecked development of imbalances in the past," it said in a statement.

'Urgent action needed'

Brussels highlighted the plight of banks in Slovenia by saying that "urgent policy action is needed".

The new Slovenian prime minister, Alenka Bratusek, insisted on Tuesday that her government was already working "day and night" to save the country's banking system.

The Commission said that the other 11 European Union countries experiencing "macroeconomic imbalances" to a lesser degree than Spain or Slovenia were Belgium, Bulgaria, Denmark, France, Italy, Hungary, Malta, the Netherlands, Finland, Sweden and the United Kingdom.

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

  • Stained glass of man with swordFrance 1 England 0

    The most important battle you have probably never heard of


  • Golden retriever10 things

    Dogs get jealous, and nine more nuggets from the week's news


  • Pro-Israel demonstrators shout slogans while protesting in Berlin - 25 July 2014Holocaust guilt

    Gaza conflict leaves Germans confused over who to support


  • The emir of Kuwait Sheikh Sabah al-Ahmad al-Jaber al-SabahFreedoms fear

    Growing concern for rights as Kuwait revokes citizenships


Elsewhere on the BBC

  • CastleRoyal real estate

    No longer reserved for kings and queens, some find living in a castle simply divine

Programmes

  • Leader of Hamas Khaled MeshaalHARDtalk Watch

    BBC exclusive: Hamas leader on the eagerness to end bloodshed in Gaza

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.