The Spanish Government and the European Commission are still negotiating the fine and the new fiscal path that will have to meet Spain to permanently correct the excessive deficit and bring it below 3% of GDP, with the possibility of a margin of two additional years until 2018, EU sources told Efe.
The College of Commissioners will decide on Wednesday the fine on Spain for failing to take effective measures to meet its targets for deficit reduction, as ratified on the 12th ministers of Economy and Finance, a penalty that can go from zero to almost 2,200 million euros or even be canceled.
After a first debate on Wednesday, the commissioners have not yet made a decision on the fine and the new fiscal path, expected in principle also for Wednesday.
At school “there is no consensus yet on a specific figure or a defined favor of a tax or another path scenario,” EU sources told Efe.
The technical work continues between services of the EC and the Spanish Government, which submitted one day after the Council of Ministers of Economy its claims reasoned to avoid the fine, in which he spoke the “firm and unequivocal” commitment to Spain to bring the deficit below 3% of GDP in 2017.
in the commissaires there yet “people who argue that there are two Extra years “, ie until 2018, according to sources, in particular the Commissioner for Economic and Financial Affairs, Pierre Moscovici.
In May, the EC had put on the table its recommendations by country for Spain an additional year and outlined a fiscal path that forced the country to lower the deficit of 5.1% (with aid to banks) to 3.7% in 2016 and 2.5% in 2017.
that recommendation went unheeded by insisting that the Council could not decide on the new path of consolidation in parallel without adopting the decision on the lack of measures taken by Spain, which is to redefine the objectives and scope.
The Spanish Minister of Economy and Competitiveness in office, Luis de Guindos, can take advantage of its participation in the meeting of finance ministers and governors of central banks of the G20 held today and tomorrow in Chengdu (Sichuan, west) to deal with the fine Moscovici and new goals.
The argument of the difficulty that the country can reduce by one year the deficit below 3% of GDP when it still has not formed government can tip the balance in favor of the two years.
The document served to determine that Spain has not taken action, the EC further provided that Spain not meet in 2017, since the deficit stood at 3.1% for that date.
The Independent Authority for Fiscal Responsibility (trade show) meanwhile warned that the deficit could soar to 4.7% of GDP in 2016, without measures such as increasing the installment payment Tax announced by the Government to Brussels companies, and has placed the deviation at 4.1% at its best prognosis.
In any case, EU sources insist that “the situation is very fluid” and you can not even anticipate what the final decision of the commissaires.
What the EC does not yet decide next Wednesday is the suspension of up to 0.5% of GDP or 50% of the commitments of the structural funds and European investment, because it does not have a preset schedule as if it is for the fine: 20 days from July 12.
The suspension, which would take effect from January 1, 2017, must “consult” with the European Parliament, with “a view to make a balanced proposal,” according wrote Vice President EC for Employment, Growth, Investment and Competitiveness, Jyrki Katainen, President of the European Parliament, Martin Schulz.
This in turn has proposed that this structured dialogue held after the summer recess, when it is expected to have a new government in Spain, to be drawn up hastily the general budget State for 2017, the draft must be submitted to the EC and later on 15 October.
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