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The finance minister Greece, Euclid Tsakalotos (I), the French Finance Minister Michel Sapin (C) and the Italian Finance Minister Pier Carlo Padoan (2-D), the July 11, 2016, at a meeting of Eurogroup Brussels (afp_tickers)
the finance ministers of the eurozone agreed to declare Spain and Portugal on Monday in breach of the rules of the fiscal deficit, thus opening the procedure for a penalty, an unprecedented decision that can arouse criticism in a paralyzed Europe by Brexit.
“the members of the eurozone will tomorrow [Tuesday] the unanimous support the recommendations of the Commission, “said Jeroen Dijsselbloem, president of the Eurogroup and Dutch Finance Minister, at a press conference.
the European Commission opened the way on Thursday to a process of unprecedented sanctions on Spain and Portugal for violating the rules of the deficit, despite the fear that the fiscal orthodoxy and austerity policies emanating from Brussels feed anti-European movements in the shadow of Brexit.
the ministers of the 19 countries eurozone discussed this finding of the Commission and, according Dijsselbloem, confirmed the failure of both countries.
“from the moment they (the ministers) are going in our direction, a period of 20 opens days it is important to shorten “he said at the press conference European Commissioner for Economic Affairs, Pierre Moscovici.
” We will start a dialogue with the ministers of the countries concerned “to argue the incumplientos reasons for the deficit, he added. The Commission may, after this stage, to propose sanctions, which may reach 0.2% of GDP “at most and least zero,” recalled
-. ‘We can not wait’ –
But he warned that the arguments “should arrive as quickly as possible for the decision to be fast”.
Spain and Portugal will from Tuesday within ten days to present their arguments and corrections to the fiscal path for this and next year.
a complicated task in Spain, in the absence of a government since elections last December, repeated in June.
” we can not wait indefinitely such and such democratic stage, “Moscovici said, recalling that the decision on Spain was delayed since may.
” There is a government, a state and therefore must take the necessary compromises ” he added.
Spain failed to comply with the deficit targets in 2015, when the imbalance in public accounts reached 5.1% of GDP, well above the 3% established by the stability and growth pact and set by the Commission (4.2%).
in 2016 the deficit could even worsen, given that, for six months, Spain is experiencing a political paralysis that forced the calling of new elections in June.
the president of the conservative government, Mariano Rajoy, projection was strengthened in these second election but without an absolute majority, had driven an historic effort of austerity to reduce the deficit from 10.4% in 2012 5% last year.
Portugal had meanwhile in 2015 a deficit of 4.4% although it had set the goal of leaving in less than 3%.
– the penalty a ‘unreason’ –
on Friday, the Spanish Deputy Prime Minister, Soraya Saenz de Santamaria, had said that Spain hoped to avoid a penalty.
To do this, the outgoing Spanish Economy Minister Luis de Guindos, said that would highlight the fiscal effort made by Spain.
“Spain was a real problem for the EU and posed risks economic and financial stability in Europe just four years ago, “de Guindos.
” Today we are the fastest growing economy, not pose any instability from the financial point of view, banking, economic , conversely, will contribute to growth in Europe, “he said declaring optimistic avoid the penalty for the” unreasonableness that would “.
Meanwhile, the Portuguese Finance Minister, Mario Centeno said that a possible penalty reduced to zero “is a possible way out.” “It is obvious that a zero penalty would be a result that would guarantee the absence of direct tax consequences,” he said.
Since the establishment of new European budgetary procedures following the debt crisis in the euro zone, the Commission has the ability to financially punish those who do not meet the budget, with fines of up to 0.2% of GDP in the country concerned.
If sanctions, Spain and Portugal were confirmed would be the first countries euro zone to receive a fine for breach of the deficit.
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