Eu Council: no budget fines for Spain and Portugal

The EU Council will not give any sanction to Spain and Portugal for failure to meet the deficit. The Community body preferred to deal with the situation by giving more space to the two Iberian countries, which will still have to take corrective measures and present a new budget plan by October 2017.

The operations to be implemented in the fall will have to be aimed at reducing the budget deficit from 4.4% at end 2015 to 2.5% by the end of this year to Lisbon, and Madrid will have until 2018 to reach the target of 3% from 5.1% last year. Greater flexibility, and, for Spain, which will bring the 4.6% in December, 3.1% in 2017 and 2.2% by 2018, in the light of a more uncertain political situation given the lack of a permanent government by the end of 2015.

The decision has accepted the proposal made by the European Commission, after taking note of the Council decision of last July 12, which made it clear that Portugal and Spain did not adopt "effective measures in response to the recommendations concerning measures to correct their excessive deficit ", with a fiscal effort recognized as" lower than recommended ", had supported the adoption of a" new adjustment path ".

The suggestion of the Commission, which in any case did not constitute a binding element for the final decision of the Council, also included the partial suspension of those countries in the commitments for participation in the European Structural Funds Development (ESI) for 2017. However, there are still two obstacles: the Commission, in fact, will have to find the support of the European Parliament, which will be discussed at the end of the summer break, and Spain and Portugal will have to demonstrate full compliance with the stability Pact and "act effectively ", said the EU executive vice president, Valdis Dombrovskis.

"Today's decision reflects an intelligent application of the Stability and Growth Pact. Giving more time, the Council adopted new tax lines, more credible and efficient, as it will contribute to the strengthening of the economies of both countries and the Eurozone in general, "said Pierre Moscovici, European Commissioner for economic and monetary Affairs. "The Commission will evaluate the actions of the two States in the coming months both in the public deficit and in the area of the new budget proposal for 2017," concluded the French politician, who said he was confident of a proactive response of the Iberian countries .