BRUSSELS — The European Commission cautioned the new French president against overspending in trying to spur growth and warned that Spain still had a long way to go to restore market confidence, as it released its verdicts Wednesday on the performance of economies across Europe.


Armed with new powers to police national budgets, the commission, the executive body for the European Union, also stepped up its call for further economic integration, including the introduction of euro bonds, to fix the sovereign debt crisis that began in Greece and that now has created spillover effects across the entire region.


In the short term, “creating a new market segment based on common issuance would address the current shortage of investor demand for the sovereign bonds of many euro-area member states,” the commission said, while acknowledging that numerous conditions to tighten economic governance had first to be met.


“The net effects of common issuance will be positive only if the potential disincentives for fiscal discipline can be controlled,” it said.


The 27 “country-specific” assessments released Wednesday, as well as one for the euro zone as a whole, are part of the measures intended to fill that governance gap.


The commission provided targeted recommendations for each of the member states. They will become binding once endorsed by E.U. leaders at their meeting at the end of June.


This year is the first time that the recommendations will be backed by powers to impose more credible sanctions, including fines of up to 0.2 percent of gross domestic product on countries in the euro area that fail to take corrective measures.


There were signs that the commission was prepared to take into account a changing mood in Europe signaled by the election this month of a new French president, François Hollande, who has emphasized the need for growth as a way out of the crisis, rather than rigorous austerity alone.


“The main challenge for fiscal policy is to pursue fiscal consolidation in a growth-friendly manner,” the report said.


It also argued against a one-size-fits-all approach. “The size of fiscal challenge differs among the euro area member states and calls for differentiated speed of consolidation,” it said.


In carefully guarded language, however, the commission sought to caution the new French president that the country’s budgetary situation remained challenging, especially given “tensions” over sovereign debts.


It said that the sustainability of the pension system that Mr. Hollande has vowed to reopen “requires careful monitoring,” and suggested that government payrolls needed to be cut, rather than beefed up, because they were already “strained.”


The commission’s verdict could put pressure on Mr. Hollande to cut rather than increase public sector jobs at a time when he is already is under pressure from unions not to backtrack in other areas, including reversing the previous administration’s raising of the minimum retirement age.


Any signs Mr. Hollande will need to compromise could weaken his Socialist Party’s standing at parliamentary elections on June 17.


Another key concern for France was access to jobs for the young, particularly as the availability of government jobs shrinks.


While the commission praised France for partly succeeding in tightening up its finances last year and for preparing for lower growth this year, it warned Paris that much more specific plans needed to be brought forward to bring the deficit to below 3 percent of G.D.P. by 2013 and to reach additional goals up to 2016.


The commission reserved some of its toughest messages for Spain, where Prime Minister Mariano Rajoy has vowed to reduce a budget deficit of 8.9 percent of G.D.P. last year, to 5.3 percent in 2012 and 3 percent in 2013.


“Spain continues to face important policy challenges following the bursting of the housing and credit bubble,” it said. “Further fiscal consolidation and fiscal discipline at regional level are necessary to restore market confidence and to halt the rapid increase in government debt.”


The commission judged that some of the policy plans submitted by Spain “lack sufficient ambition to address the challenges identified.” Regional governments are expected to miss their deficit targets and so far had failed to offer specific plans for how to achieve them, it added.


The report also criticized Spain’s tax system, saying some of the new measures were “heading in the opposite direction” of what was recommended to spur growth, by adding to the burden on labor and capital.


As for the Spanish banking sector, which is sinking deeper into crisis because of a huge bailout request from Bankia, the country’s biggest mortgage lender, the report said that the deepening recession in Spain “may require further strengthening of the capital buffers of banks, especially of weaker institutions.”


The report offered cautious praise for Italy, the third biggest economy in the euro area, currently led by a technocrat prime minister, Mario Monti. But it said more needed to be done to tighten public finances, and to change labor markets and taxation.


No one escaped criticism, even Germany, which clocked relatively robust economic performance in 2011 and has already beaten its deficit-reduction targets.


The commission noted that the German economy would slow in 2012, although unemployment will continue to decrease, and criticized Berlin for not being more ambitious in its efforts to address some looming problems, such as an aging population. “Demographic change poses a major challenge for Germany’s potential growth in the medium to long term,” it said, urging steps to increase the participation of women and immigrants in the workforce, for example.


While Germany avoided a credit crunch, the financial crisis “did reveal vulnerabilities in large parts of the German financial sector,” especially the state-owned Landesbanken, which could stand further restructuring, it added.