Poor economic situation in Germany and nine other member states could negatively affect the entire EU

(Patria) - The poor economic situation in Germany and nine other EU countries could have negative consequences for the entire bloc, the European Commission warned yesterday.

Macroeconomic imbalances in these countries have raised concerns in the so-called European Commission's Alert Mechanism Report and will be analyzed more deeply.

"The EU is facing serious structural challenges that threaten our long-term prosperity," said European Commissioner for Economy Valdis Dombrovskis, warning that urgent action is needed.

The aim of the report is to identify and address such problems early. Indicators taken into account include unemployment rates, debt levels, credit flows, and real estate prices.

Macroeconomic imbalances in one EU country, for example, a high current account deficit or a real estate bubble, can have spillover effects on other member states.

Unusually high inflation in recent years, including increased labor costs and real estate prices, has taken its toll, the European Commission's statement emphasizes.

In addition to Germany, which has long been considered the leading European economy, Cyprus, Greece, Italy, Hungary, Estonia, Romania, Slovakia, Sweden, and the Netherlands will undergo deeper analysis by the EC in 2025.