The European Commission stated in its annual assessment of the economic and social situation in the member states published on Wednesday that Italy, Greece and Cyprus are experiencing "excessive economic imbalances." In addition, the commission noted that ten more EU member states including Germany, Spain and France are facing economic imbalances that are not excessive. Additionally, the commission said it sees no improvement in Italy's debt in the coming years, while adding that the country's budget doesn't do enough for potential growth.
"The European economy is experiencing its seventh consecutive year of economic expansion. Yet growth is slowing down. Maintaining momentum into the future will require a high level of competiveness, as well as continued upward convergence. To unlock the full growth potential of our economies, we need structural reforms," EC Vice President Valdis Dombrovskis (pictured right) said in the report.
At the same time, Commissioner for Economic and Financial Affairs Pierre Moscovici (pictured left) noted that in the face of subdued growth, "it is more important than ever that governments act to strengthen the resilience of our economies: reducing debt, boosting productivity, investing more and better, and tackling inequalities."
