European Commission cancels fines for Spain and Portugal

Spain has been given two years to reduce its deficit

LAST UPDATED: 27 Jul, 2016 @ 17:36

spain finesTHE European Commission has announced that the European Commission will not be levying fines against Spain or Portugal.

Though both countries failed to meet their deficit-reduction goals, the commission met each with leniency.

Spain has been given two years to get its deficit below 3% of GDP, while Portugal has been given one to get below 2.5%, Pierre Moscovici, the European Commissioner for Economic Affairs, announced on Twitter.

Commission leaders faced a tough decision with the two Iberian countries.

On one hand, too much leniency with countries that spend beyond their means could lead to reckless borrowing and spending.

However, with Eurosceptic and populist movements finding surer footing across the EU, the commission decided that a harsh punishment was the wrong tack.

Moscovici also tweeted about the decision: “It would have been legally possible to sanction. But our decision is politically and economically the most appropriate.”

Valdis Dombrovskis, VP of the European Commission, also cited the ‘profound challenges’ both countries face in defence of the decision.

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  1. It would be blood from a stone really. How about an alternative? Jail-time for the bent politicians and money-manipulators for instance.

  2. Another proof, that any kinds of ‘sanctions’ in the EU are paper tigers. This is the invitation to all members of Club Med to shamelessly expand their debts until the collapse of the Euro. Presumably many of those debts have also been credited by British banks. That to say means that the Sterling is not safe too.

  3. Offered on a property that’s owned by Bank , declined our offer, said prices were rising , this was Jan this year 2016.
    Two months ago alerted to new price, exactly what we offered 6 months ago.
    After lots of hassle & calls we managed to view house with Spanish a Builder , it’s deteriorated more since January & going to cost more to renovate , it’s basically uninhabitable .
    Offered again, lower this time as roof now is sagging , more cost, guess what, Bank declined, so there they are, with a depreciating asset , been on market over three years & think it’s going to get more for it , you couldn’t make it up ! When will Banks and vendors realise any property is only worth what people are prepared to pay , over priced , won’t sell !
    We love Spain, we love the people but oh my God how come Banks are run by morons , why do people put up with it ? No doubt another alert will be sent to us but by then it will need more bloody work & expense by which time we will have found a place that won’t cost time & money before we can live in it ! Wake up Unicaja !!!
    Spain needs investment but going a funny way around it , low £ doesn’t bother us but overpriced property is Never going to sell! Wake Up !!????
    By the way, property is in a town, a townhouse , not a silly rural ruin !!

  4. Wolfgang,
    you do try, I’ll give you that – British banks no, try Commerzbank and Deutschebank. It was’nt the Greeks who were bailed out was it. It was German and French banks. German banking learnt nothing from the stupidity of lending to Greece. They did the same thing again with the Italian banks. Indeed all the Euro banks are all in deep doo-doo, not least the German banks, remember what happened to Landesbank. The latest stress tests were a complete joke and the markets know this.

    J White – exactly. Brits have many faults but far too many mainland countries cannot/will not encounter change, Spain is a classic example, denial syndrome rules as always. It’s as if they fear a complete breakdown if they have to admit that they are wrong in how they think and act, in business, ego has no value, only reality does.

  5. Goldman Sachs collusion with various out going EU ministers from Italy, Germany, UK and Greece gave the illusion of a bailout. As per Greece, Goldman Sachs bought the Greek debt for twice what is was worth, then in an invisible side deal set up a derivatives scheme which forces Greece to pay it back, with Goldman pocketing $900,000. Goldman Sacks has long had a revolving door hiring policy for European ministers and high ranking officials keeping them well heeled till their next appointment or election.