Economics
EU Warns of Contagion From France, Italy Economic Weaknesses
- `Excessive imbalances' in second-, third-largest euro states
- Countries must reduce level of public debt, EU Commission says
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The European Commission warned France and Italy that weaknesses in their economies risk triggering a new wave of contagion to other countries as it placed the two nations in its most severe category for economic imbalances.
The euro bloc’s second- and third-largest economies, as well as Portugal and two non-euro countries -- Bulgaria and Hungary -- have “excessive imbalances,” the European Union’s executive arm said on Tuesday. The EU said it will escalate its policing of these countries’ spending policies as it warned of rising levels of public debt.