International AFP
the Eurogroup chairman Jeroen Dijsselbloem (Right.) speaks with the Commissioner for Economic and Financial Affairs, Pierre Moscovici, on July 11, 2016 at a meeting of Eurogroup in Brussels (afp_tickers)
the finance ministers of the euro area discussed Monday in Brussels defaults deficit Spain and Portugal to resolve if they impose sanctions, an unprecedented decision that can arouse criticism in a paralyzed Europe by Brexit.
“what we discuss today [Monday] is the decision of the Commission [stating] that by the time they did not take the necessary measures to comply with the “set goals, Eurogroup chairman Jeroen Dijsselbloem said to reach a meeting of ministers of the euro zone.
the European Commission opened on Thursday via a process of unprecedented sanctions on Spain and Portugal for breaching 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 finance ministers must discuss this finding of the Commission and if they confirm the failure of both countries, the Commission, guardian of the treaties, may propose sanctions.
“Let’s see how feel the ministers and, if they agree, then the Commission should move forward, “added Dijsselbloem.
But the decision on sanctions, if any, will come later. Spain and Portugal must first present their arguments and possible corrections budgets to respect the deficit targets.
To Dijsselbloem, given the fiscal situation in the two countries, “it is inevitable” make new efforts and adjustments, while estimating that did not meet agreed with the Commission.
Spain failed to comply with the deficit targets in 2015, when the imbalance in public accounts reached 5.1% of GDP, well above 3 % set by the stability and growth pact and fixed by the Commission (4.2%).
in 2016, the deficit could be even worse, considering that six months ago Spain lives paralysis policy that forced the calling of new elections in June.
President of the caretaker government, Mariano Rajoy, which was strengthened in these second elections, but without an absolute majority, had driven a historic effort austerity to reduce the deficit from 10.4% in 2012 to 5% last year.
Portugal had, meanwhile, in 2015 a deficit of 4.4%, although it had set the goal of leaving it less than 3%
-. the fine a “unreasonableness” –
on Friday, the Spanish Deputy Prime Minister, Soraya Saenz de Santamaria, had assured that Spain hoped to avoid a penalty.
To do this, the 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 himself optimistic avoid the penalty for the” unreasonableness that would “.
once the finance ministers of the Eurogroup are pronounced, the Commission has a within 20 days for a proposed fine.
at the same time, Spain and Portugal have ten days to submit arguments and propose corrections to their respective budgets.
Since the establishment of new European budgetary procedures after the debt crisis in the euro area, the Commission has the possibility to financially punish those who do not meet the budget, with fines of up to 0.2% of GDP in the country concerned.
However, explains the Commission, the fine can always be canceled “if requested exceptional economic circumstances or following reasoned member State.”
in this regard, the Commissioner for economic Affairs and financial, Pierre Moscovici, has not ruled on Thursday that “the fines could be zero” euros.
Instead, the German minister Wolfgang Schäuble ruled otherwise. “We all agree, the rules that gave us (…) should be applied,” he said.
If sanctions, Spain and Portugal were confirmed would be the first countries in the euro zone to receive a fine for breach of the deficit.
afp_tickers
AFP international
No comments:
Post a Comment