Stability and Growth Pact: fiscal proposals for Spain and Portugal

The European Commission decided on 27 July 2016 to recommend the cancellation of the fine which was to be applied to Portugal and Spain as a result of their failure to bring down their excessive budget deficits. The Commission also recommended a new fiscal adjustment path for both countries.

This announcement followed the decision of the Council of the European Union on 12 July 2016, when it had been found that the two Iberian countries had not taken effective action in response to its recommendations on measures to correct their excessive deficits.

It was up to the Council to adopt, amend or reject these recommendations. Regarding the suspension of part of the commitments of Structural Funds for 2017, a decision would be made later on following the structured dialogue with the European Parliament.

European Commission: DG Communication: RAPID: MEMO/16/2624, 27.07.16: Stability and Growth Pact: fiscal proposals for Spain and Portugal http://europa.eu/rapid/press-release_MEMO-16-2624_en.htm

European Commission: DG Communication: RAPID: SPEECH/16/2651, 27.07.16: Remarks by Vice-President Dombrovskis on the Commission's fiscal proposals for Spain and Portugal http://europa.eu/rapid/press-release_SPEECH-16-2651_en.htm

El País, 27.07.16: Spain avoids EU sanctions despite missing its deficit targets http://elpais.com/elpais/2016/07/27/inenglish/1469626787_621087.html

Politico, 28.07.16: Wolfgang Schäuble bails out Spain, Portugal http://www.politico.eu/article/wolfgang-schauble-bails-out-spain-portugal-sanctions-juncker-german-finance-minister/

EurActiv, 28.07.16: Commission split on credibility of rules as Spain and Portugal get ‘pardon’ http://www.euractiv.com/section/euro-finance/news/commission-split-on-credibility-of-rules-as-spain-and-portugal-get-pardon/

EUObserver, 27.07.16: EU lets Portugal and Spain off the hook https://euobserver.com/economic/134510

Euronews, 27.07.16: European Commission lets Spain and Portugal off the hook for breaking EU budgetary rules http://www.euronews.com/2016/07/27/european-commission-lets-spain-and-portugal-off-the-hook-for-breaking-eu

The Wall Street Journal, 27.07.16: European Commission Decides Against Fining Spain, Portugal Over Budget Deficits http://www.wsj.com/articles/european-commission-recommends-not-fining-spain-portugal-over-budget-deficit-1469621014

Deutsche Welle, 27.07.16: No fines for overspending Spain, Portugal http://dw.com/p/1JWdf

The Local.es, 27.07.16: Spain escapes fine from EU over excessive deficit http://www.thelocal.es/20160727/spain-escapes-fine-from-eu-over-excessive-deficit

European Commission: DG Communication: RAPID: SPEECH/16/2650, 27.07.16: Propos introductifs du Commissaire Pierre Moscovici lors de la conférence de presse sur les recommandations budgétaires pour l’Espagne et le Portugal http://europa.eu/rapid/press-release_SPEECH-16-2650_en.htm

ESO: Background information: Excessive deficit procedure: Council finds that Portugal and Spain have not taken effective action, 12 July 2016 http://www.europeansources.info/record/excessive-deficit-procedure-council-finds-that-portugal-and-spain-have-not-taken-effective-action/

Euro|Topics: Debates, July / August 2016: Is the EU right to spare Spain and Portugal? http://www.eurotopics.net/en/163376/is-the-eu-right-to-spare-spain-and-portugal

El País, 28.07.16: The inside story of how Spain avoided EU sanctions http://elpais.com/elpais/2016/07/28/inenglish/1469704242_546729.html

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