European commission has published a report on in-depth reviews of 17 member states with macroeconomic imbalances. Again it was established that Slovenia continues to experience excessive imbalances, but no measures were taken against them. An independent recommendation was addressed to Slovenia regarding measures to be taken for a more decisive reduction of the deficit.
In Italy, Croatia, and again in Slovenia the Commission has established excessive macroeconomic imbalances and demands decisive measures, while for France and Slovenia, according to new rules, additional measures are advised for elimination of the excessive deficit. For now no procedures were initiated against any of the countries; the decision will be reassessed in June.

Olli Rehn, Commissioner for economic affairs, explains: "While Slovenia made considerable progress in bank recovery, there are other challenges which demand strong political measures. Slovenia should pay special attention to risks that budget objectives will not be met."
More decisive measures regarding banks
Specifically, the commission draws attention to the losses in cost competitiveness, the corporate debt overhang, the increase in government debt, and weak corporate governance, which require special attention. While considerable progress has been made in repairing the bank's balance sheets, the banking sector still needs determined execution of strategy – restructuring, privatisation, and enhanced supervision.
As was already obvious in the winter announcement, the commission estimates that Slovenia, in spite of the two-year moratorium, next year won't succeed in abolishing the excessive deficit. It is true that bank recovery is one of the reasons the interim goals won't be met, the deficit will remain over the permitted three percent of GDP next year as well, if no additional measures are taken.
The commission intends to meticulously monitor the realisation of the recommendation in the countries with excessive imbalances, says Rehn – besides Italy and Croatia also Slovenia was mentioned.
Recommendations to several countries
Some of the larger member states got recommendations as well: Germany should strengthen domestic demand, France and Italy should accelerate structural reforms and eliminate deficit, in Spain company’s debts should be reduced, and social problems solved. The countries must include the recommendations and warnings into their April budget and reform plans. Slovenia and France got special warnings – in the absence of decisive budget measures the Commission will act in June, and that could result in a financial penalty.