Spain avoids EU sanctions over missed deficit targets

SPAIN has been granted a reprieve by the EU over its failure to meet deficit targets.

Brussels will revisit the country´s public finances in early July in a bit to not interfere with the fresh elections in June.

Spain´s deadline to fix its public finances has been moved to the end of this year.

The EU´s economic chief Pierre Moscovici said: “The recommendation for Spain is no longer realistic, we have concluded this is not the right moment, economically or politically to take this step.”

Spain and Portugal were set to become the first EU countries sanctioned for missing deficit targets.

Portugal has been offered a reprieve until 2017.

The news will be welcomed in Madrid, where fresh elections after six months of political deadlock are set to take place next month, with polls suggesting a similar outcome.