The EU Council ratified the decision not to fine Spain and Portugal – Yahoo Finance Spain

The proposal from the European Commission not to punish Spain and Portugal although they had breached the deficit targets was approved by finance ministers of the European Union, said Tuesday the EU Council.

“the Council agrees not to impose fines on Spain and Portugal for failing to implement effective measures to correct their excessive deficits measures,” the in a statement.

the Council had ten days, ie until midnight on Monday to oppose the proposal of the European Commission, filed on July 27.

the Commission proposed to cancel the fines of the two countries, measures that “would have been counterproductive at a time when the peoples doubt Europe” after the Brexit said the European Commissioner for Economic Affairs, the French Pierre Moscovici.

the sanctions could have reached up to 0.2% of gross domestic product (GDP) of each of the two countries.

in 2015, the Spanish deficit reached 5.1% of GDP , much more than the maximum of 3% set by the so-called stability pact and that the target of 4.2% thereafter established by the Commission.

Portugal meanwhile had a deficit of 4.4% of GDP last year, when the target was 3%.

in addition, the European executive granted to Spain two additional years on Wednesday, until 2018, to reduce its deficit below 3%.

for this country, which has not yet formed government since the general elections of June 26, the European Commission recommends the following budget trajectory: a deficit of 4.6% of GDP in 2016, 3.1% in 2017 and 2.2% in 2018.

in Portugal, the Commission required him to reach this goal since 2016, with a deficit of 2.5% of GDP this year.

Two goals the EU Council, a body representing the governments of the Member States, branded on Tuesday of “credible”.

“We must take effective measures before October 15, “date on which the two countries will have to submit a draft budget program, said the Council.

the European Commission welcomed on Tuesday the decision, witnessing” an intelligent application of Stability Pact “as Moscovici.

in addition to the fines, the Commission has the obligation to propose a full or partial suspension of financing structural funds for Spain and Portugal.

the Commission hopes to launch a “structured dialogue” with the European Parliament on this issue

<-.! google_ad_section_end ->