The EU warned of a worrying situation in 10 countries: The entire bloc in danger?

Macroeconomic imbalances in those countries caused concern in the Commission's so-called Alert Mechanism Report and will be analyzed in more depth.

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

The goal of the report is early detection and resolution of such problems. Indicators taken into account include the unemployment rate, debt levels, credit flows and property prices.

Macroeconomic imbalances in one EU country, for example a high current budget deficit or a real estate bubble, can lead to spillovers to other member states. Unusually high inflation in recent years, including increased labor costs and real estate prices, has taken its toll, according to a statement from the Commission, reported by the Hina agency.

Along with Germany, which has long been considered the leading European economy, Cyprus, Greece, Italy, Hungary, Estonia, Romania, Slovakia, Sweden and the Netherlands will undergo a deeper analysis by the Commission in 2025.