Stability and Growth Pact: update on the fiscal situation of Spain and Portugal

On the 7 July 2016, the European Commission confirmed as had been announced in its Communication of the 18 May 2016, that both Spain and Portugal would require new deadlines to correct their excessive deficits.

Although it was recognised that both countries had carried out significant structural reforms in past years, the European Commission was legally obliged to present a proposal for a fine under the Article 126 of the Treaty on the Functioning of the European Union.

Portugal had been recommended to correct its excessive deficit by 2015 and Spain by 2016.

EU financial ministers were expected to discuss the European Commission’s findings at the ECOFIN Council of 12 July 2016. Effectively, the European Commission would leave it to the EU Member States in the Council to decide whether fines should be imposed.

European Commission: DG Communication: RAPID: MEMO/16/2377, 07.07.16: Stability and Growth Pact: update on the fiscal situation of Spain and Portugal http://europa.eu/rapid/press-release_MEMO-16-2377_en.htm

European Commission: DG Communication: RAPID: SPEECH/16/2439, 07.07.16: Vice-President Dombrovskis' press remarks on the update of the fiscal situation in Spain and Portugal http://europa.eu/rapid/press-release_SPEECH-16-2439_en.htm

ESO: Background information: Spring 2016 European Semester package: Commission issues country-specific recommendations http://www.europeansources.info/record/press-release-spring-2016-european-semester-package-commission-issues-country-specific-recommendations/

ESO: Key Source: Stability and Growth Pact http://www.europeansources.info/record/stability-and-growth-pact/

Politico, 07.07.16: Commission declares Spain and Portugal violated budget rules http://www.politico.eu/article/european-commission-declares-spain-and-portugal-violated-budget-rules/

EUObserver, 07.07.16: Commission hints at 'zero sanctions' on Spain and Portugal https://euobserver.com/economic/134247

EurActiv, 07.07.16: EU declares Spain, Portugal in violation of deficit rules http://www.euractiv.com/section/euro-finance/news/eu-declares-spain-portugal-in-violation-of-deficit-rules/

Deutsche Welle, 07.07.16: EU recommends fines for Spain and Portugal over deficits http://dw.com/p/1JLMO

El Pais, 06.07.16: Brussels starts sanction proceedings against Spain over budget miss http://elpais.com/elpais/2016/07/06/inenglish/1467792896_126457.html

The Local.es, 07.07.16: EU moves closer to fining Spain for 2015 overspend http://www.thelocal.es/20160707/its-official-spain-broke-eu-spending-rules-in-2015

European Commission: DG Communication: RAPID: SPEECH/16/2440, 07.07.16: Remarks by Commissioner Pierre Moscovici on the update of the fiscal situation in Spain and Portugal http://europa.eu/rapid/press-release_SPEECH-16-2440_en.htm

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