Press Release: Spring 2016 European Semester package: Commission issues country-specific recommendations

The European Commission proposed its 2016 country-specific recommendations (CSRs) on 18 May 2016, setting out its economic policy guidance for individual Member States for the 12 to 18 months to come. In addition to efforts already identified and ongoing at European level, this guidance focused on priority reforms to strengthen the recovery of Member States' economies by boosting investment, implementing structural reforms and pursuing fiscal responsibility.

Some analysts and media sources had predicted Portugal and Spain to be target to sanctions due to their excessive budget deficits. If carried out this would be an unprecedented act by the European Commission since they were given this power during the eurozone crisis. However, the European Commission decided to postpone any decision until July 2016, until after the Spanish election on the 26 June 2016.

Italian Prime Minister Matteo Renzi claimed victory in his discussions with the European Commission after the Commission granted Italy 'unprecedented' leeway on the application of deficit rules for 2016.

European Commission: DG Communication: RAPID: MEMO/16/1727, 18.05.16: European Semester 2016 Spring Package explained http://europa.eu/rapid/press-release_MEMO-16-1727_en.htm

ESO: Background information: Press Release: European Semester 2016: Commission publishes Country Reports http://www.europeansources.info/record/press-release-european-semester-2016-commission-publishes-country-reports/

EurActiv, 18.05.16: Commission to punish Spain and Portugal, ‘pardon’ Italy, on deficits https://www.euractiv.com/section/euro-finance/news/commission-to-punish-spain-and-portugal-pardon-italy-on-deficits/

EUObserver, 18.05.16: Spain and Portugal likely to face fines over deficit https://euobserver.com/economic/133456

Politico, 18.05.16: Commission spares Spain and Portugal on deficit, for now http://www.politico.eu/article/commission-spares-spain-and-portugal-on-deficit-for-now/

European Commission: DG Communication: RAPID: SPEECH/16/1745, 18.05.16: Remarks by Vice-President Dombrovskis on the Spring 2016 European Semester package http://europa.eu/rapid/press-release_SPEECH-16-1745_en.htm

European Commission: DG Communication: RAPID: SPEECH/16/1744, 18.05.16: Speaking points by Commissioner Thyssen on the Spring 2016 European Semester package http://europa.eu/rapid/press-release_SPEECH-16-1744_en.htm

European Commission: DG Communication: RAPID: SPEECH/16/1747, 18.05.16: Remarques du commissaire Pierre Moscovici sur le Paquet "Semestre européen" du printemps 2016 http://europa.eu/rapid/press-release_SPEECH-16-1747_en.htm

EurActiv, 18.05.16: Spanish elections delay potential budget deficit fines http://www.euractiv.com/section/euro-finance/news/spanish-elections-delay-potential-budget-deficit-fines/

Euronews, 18.05.16: EU gives Spain, Portugal more time on deficits http://www.euronews.com/2016/05/18/eu-gives-spain-portugal-more-time-on-deficits/

EUObserver, 18.05.16: Elections buy Spain more time on EU finance rules https://euobserver.com/economic/133464

The Guardian, 18.05.16: European commission delays decision on Spain and Portugal deficits https://www.theguardian.com/business/2016/may/18/european-commission-spain-portugal-budget-deficits-pierre-moscovici

Politico, 18.05.16: Europe ducks hard call on budget rules http://www.politico.eu/article/commission-portugal-spain-fine-europe-ducks-hard-call-on-budget-rules/

Euro|Topics: Debates, May 2016: Brussels goes easy on deficit sinners http://www.eurotopics.net/en/159332/brussels-goes-easy-on-deficit-sinners

European Commission: Europe 2020: Making it happen: Country-specific Recommendations http://ec.europa.eu/europe2020/making-it-happen/country-specific-recommendations/index_en.htm

El Pais, 18.05.16: Brussels asks Spain for €8 billion in new spending cuts http://elpais.com/elpais/2016/05/18/inenglish/1463581059_204053.html

The Local.es, 19.05.16: Spain wins reprieve on deficits from EU http://www.thelocal.es/20160519/spain-and-portugal-win-eu-reprieve-on-deficits

The Local.it, 18.05.16: Italy granted 'unprecedented' slack on EU budget rules http://www.thelocal.it/20160518/renzi-claims-victory-as-eu-gives-italy-more-budget-rules

ESO: Background information: Italy is stretching budget flexibility to the limit, raising a number of issues over EU fiscal rules http://www.europeansources.info/record/italy-is-stretching-budget-flexibility-to-the-limit-raising-a-number-of-issues-over-eu-fiscal-rules/

ESO: Background information: Commission unconvinced by Spain’s deficit reduction efforts http://www.europeansources.info/record/commission-unconvinced-by-spains-deficit-reduction-efforts/

ESO: Background information: Portugal adopts anti-austerity budget despite concerns http://www.europeansources.info/record/adoption-of-the-portuguese-national-budget-for-2016/

EurActiv, 03.06.16: Dijsselbloem berates Juncker for failing to apply EU pacts http://www.euractiv.com/section/euro-finance/news/dijsselbloem-raps-juncker-for-failing-to-apply-eu-pacts/

Politico, 16.06.16: You can’t ignore our sacrifices, Portugal tells Commission http://www.politico.eu/article/sanctions-portugal-austerity-economy-minister-caldeira-cabral-budget-deficit-eurozone-growth-eurogroup-ecofin-eu-commission/

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