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(Image Source: Bloomberg News)
BY ELISA LOPEZ AGUADO
The European Commission warned Spain and Slovenia on Wednesday — saying their economic situation
is too risky and imbalanced and that their governments need to act quickly.
BusinessWeek reports both Spain and Slovenia will be “punished under a year-old ‘macroeconomic
imbalances procedure’” if they don’t make reforms before May 29. That measure would
deal with...
- the decreasing competitiveness of the countries - [and] those banking systems that pushed
Slovenia and Spain into the debt crisis
Indeed, Spain must propose a reform program by the end of April. This drastic warning
hasn’t caught anybody by surprise.
The BBC reminds “Spain has already had its banking system bailed out and Slovenia is
expected to become the next to ask for a debt rescue.”
Spanish newspapers El Pais and El Correo recall that the Spanish government was confident
the recession would be over by the end of 2013 — but now it will probably carry into
2014.
The Daily Telegraph says “Slovenian politicians insisted [the country] remain calm” even
if the nation is “in depths of its second recession in four years.”
The warning comes after the European Commission published a report late Tuesday analyzing
the European economical situation.
EC economics chief Olli Rehn explained the report considers 11 indicators that include...
- Current account balance - International investment
- Unit labor costs - Financial sector debts
The report alleges another 11 member states are “imbalanced”, including Belgium, France,
Finland and, possibly, the UK. Though it says their situation is not as dangerous as the
one in Slovenia or Spain.