EU refrains from fining Spain by budget – Terra Colombia

The European Union will not fine for the moment Spain and other countries and give them an extra margin to adjust their budgets to the bloc’s rules.

European Commission sanctions were envisaged to Spain for failing to control its deficit for the fourth consecutive year and similar measures against Portugal.

But the Commission said that “the situation will” of the two countries in early July.

The EU wants countries to keep their budget deficits below 3% of GDP and has set goals for those who break the rule. One of the reasons for the huge European debt crisis of recent years is that several countries often overlook these limits.

The EU law provides for fines of up to 0.2% of GDP for countries that fail to comply, but so far not been implemented.

“This is not fair, economically or politically, to take that step now,” said Commissioner for Economic Affairs of the EU, Pierre Moscovici.

The decision to postpone the trial could favor the interim Spanish Prime Minister Mariano Rajoy ahead of the general elections on June 26. Rajoy announced plans to cut taxes, which raised the possibility of new clashes with the EU for deficit reduction.

The postponement of sanctions would boost allegations that the European Commission has no power when applying economic standards.

In this regard, Moscovici insisted that despite the delays, the Commission is “determined to enforce the rules.”

In justifying the postponement until July, noted that Portugal and Spain are “two countries that have suffered serious crisis, unemployment levels remain very high”.

But the two have “made significant efforts to reform,” he added.

With regard to Italy, in view of the encouraging economic statistics and reforms premier Matteo Renzi, the Commission said it will prepare a new report for November.

In general, it is expected that the average deficit in the euro zone will fall to 1.9% of GDP, compared with 6.1% in 2010, at the height of the crisis economic.