The European Commission started disciplinary proceedings on Wednesday against France, Italy and five other EU member states for taking up excessive new debt, in breach of EU rules.
Belgium, Hungary, Malta, Poland and Slovakia have also been taken to task by the European Union's executive arm for the budget deficits they have been running.
Wednesday's commission decision is the first step in a process called an excessive deficit procedure (EDP), instructing the seven EU countries to reduce their public spending.
The EU executive had forecast in May that multiple EU countries were going to breach regulations on budget deficits and national debt levels in 2024.
Under receintly reintroduced EU budget rules, member states must keep their debt within 60% of gross domestic product and limit their deficit to 3% of GDP.
According to the commission's economic forecast, France at -5.5%, Italy at -4.4%, and the five other EU member states will breach this budget deficit limit in 2024.
Austria, Finland, Spain and Estonia were also flagged in the May forecast but received a reprieve on Wednesday after their comparative debt levels was deemed favourable and their deficit judged to be temporary.
Romania was also highlighted but is already subject to disciplinary proceedings over high debt and deficit levels.
EU finance ministers will be asked to approve the commission's assessment in July.
Then, under the supervision of the commission, countries subject to an EDP must submit measures to reduce their debt and deficit for four years.
The EU decided to suspend the debt and deficit regulations in the economic fallout of the Covid-19 pandemic and the full-scale Russian invasion of Ukraine.
With the rules now back in place, after some reforms were negotiated, any EU country that breaches the debt and deficit limits risks legal punishment.
The goal is primarily to ensure the stability of the eurozone after previous financial crises, by bringing countries to a sound financial standing.
As part of the EDP process, under certain conditions the four-year plan to reduce debt and deficits can be extended to seven years - for example if a country commits to growth-promoting reforms and investments.
The commission can also temporarily take into account the increase in interest payments when calculating the adjustment efforts.
Allowances are also made for investments in defence and policies to tackle climate change.
EU countries that fail to comply with the disciplinary proceedings could face financial penalties valued at billions of euros, however these have never yet been imposed.
