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Portugal and Spain might be fined by European Union

Staff Writer | July 8, 2016
The European Commission (EC) confirmed that Spain and Portugal did not fulfil with the financial amendment to reduce their fiscal deficit, a reason for which both European countries might be fined by the EU.
European business   Spain should have reduced their deficits
EU Economic and Financial Affairs Commisionner Pierre Moscovici said he was confident in the fact that the EU Financial Ministers will support, and confirm the decision of the EC in a meeting next week.

The EC considered the fine could be annuled, in the case of exceptional economic circumstances or previous request by the member country in question.

The failure to comply the commitment is because the public deficit of Spain and Portugal went over 3 percent of their Gross Domestic Product, which is superior to the limits fixed by the EU economic stability agreement.

Spain should have reduced its deficit of 4.2 percent in 2015, but in 2016, the deficit is now in 5 percent, quite over its plan of 2.8 percent for 2016.

Portugal went over 3 percent, going up to 4.4 percent of its Gross Domestic Product.

After knowing the statements of the EC, Portuguese Prime Minister Antonio Costa stated that Portugal 'did not deserve to be sanctioned" and said Portugal needs a "new plan to save the economy".