The European Commission called for big changes throughout the eurozone yesterday as it placed Spain at the head of a critical list of 12 economies ordered to carry out major reforms this year.

The European Union executive said eurozone-wide bank deposit guarantees were now essential as investor concern homed in on wayward Spanish public finances, locked in a spiral of recession and massive unemployment.

Model economy Germany, along with Bulgaria, was taken off the Commission’s deficit blacklist, joining Estonia, Finland, Luxembourg and Sweden in the good books.

The Commission said the main steps towards “full economic and monetary union, including a banking union” would involve “euro area financial supervision and euro-area wide deposit guarantees.”

Spain and Cyprus – which is deeply intertwined with the Greek economy –were listed as being in “very serious” trouble unless there is prompt action both on public finances and on the economic levers the Commission says are most likely to generate wealth and create jobs.

The number two and three eurozone economies of France and Italy were placed in a ward for “serious” problems, alongside Hungary and Slovenia, the EU highlighting problems stored up over public pensions or the fight against tax fraud.

Belgium, Bulgaria, Denmark, Triple A-rated Finland, Sweden and the United Kingdom – which does the bulk of its trading with the eurozone –were also identified as suffering from “imbalances,” but the Commission maintained that across the 12 “none are currently excessive.”

Existing bailout recipients Greece, Portugal and Ireland were simply told to implement agreements already struck with the EU and the International Monetary Fund.