The European Union has warned that Spain and Slovenia are facing excessive problems for balancing their economies amid the ongoing recession and high unemployment.
The European Commission said on Wednesday that Spain and Slovenia have been bogged down by recession, high unemployment and struggling financial sectors, giving them a few weeks to tackle excessive imbalances.
Both countries face the biggest economic threat at present, said the executive arm of the 27-member EU, adding that they need to fix their banking sectors to ensure economic growth.
Spain has until the end of April to deliver a reform program as debt levels are posing “serious risks for growth and financial stability,” said the Commission.
Imbalances in debt, unemployment and growth have inflicted long-term damage on Spain, as more than half the youth under 25 years-old are unable to find a job.
The report said Slovenia has “built up excessive macroeconomic imbalances” and is facing a substantial risk from high corporate debt, bad loans and deteriorating public finances.
The Commission went on to say that 11 other EU countries including Belgium, Bulgaria, Denmark, France, Italy, Hungary, Malta, the Netherlands, Finland, Sweden and the United Kingdom are "experiencing macroeconomic imbalances."
All 13 countries must submit solutions to Brussels for approval under new EU rules.
Europe plunged into financial crisis in early 2008. The worsening debt crisis has forced the EU governments to adopt harsh austerity measures, triggering protests against spending cuts in many European countries.