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the countries of the European Union have decided to cancel the budget fines for Spain and Portugal and set new deadlines to reduce their excessive deficits, said Tuesday their representative body in Brussels. in the image file, an EU flag flutters outside the headquarters of the European Commission in Brussels. REUTERS / Francois Lenoir
BRUSSELS (Reuters) – the countries of the European Union decided to cancel the budgetary fines for Spain and Portugal and set new deadlines to reduce their excessive deficits, said Tuesday their representative body in Brussels.
the decision, widely expected, confirms the proposals made by the European Commission in July renounce sanctions, although both countries exceeded last year’s limit EU deficit of 3 percent of gross domestic product.
the European Council said in a statement that Spain would have two years until 2018, to bring the deficit below 3 percent. Portugal would have a year until 2016 to reduce its deficit to 2.5 percent.
The decision, which is based on a provision of exceptional circumstances, occurs in a context of increasing anti-European sentiment and anti-austerity across Europe, following a similar concession to France when exceeded its deficit target last year.
Both Madrid and Lisbon should take “effective measures” before October 15 and present on that date a tax report, said the Council, confirming the recommendation made by the European Commission in July.
Spain may have difficulty taking further steps by mid October because it is trying to form a government after two general elections in December and June have not yet produced new government.
after the summer recess, the Commission will decide whether to freeze some EU funds to Spain and Portugal next year, a procedure within the scope of the tax rules in the EU.
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