The European Union is expected to place a staggering 12 countries on its fiscal watchlist as the bloc’s budget comes under pressure.

According to sources speaking to Bloomberg, France is at risk of flouting guidance and Germany and Italy are expected to be deemed not fully compliant.

A ‘watch list’ of countries is expected to be released today (November 21) as part of the European Commission’s national budgets report for 2024. However, the verdict might still change before it’s adopted by the commission.

In a confidential EU report, Belgium, Finland, and Croatia are also reportedly posing a threat to exceed budgetary targets. Austria, Latvia, Luxembourg, the Netherlands, Portugal, and Slovakia are grouped in with the bloc’s largest economy, according to the report.

The EU’s assessment comes after a pandemic-induced suspension of the fiscal regime, which had limited deficits to three percent of GDP.