No fines against Spain and Portugal for fiscal violation – Brussels

Brussels has moved to end a stand-off with Spain and Portugal over their persistent failure to hit EU budget targets, proposing that neither country be fined for breaching fiscal guidelines.

In a step that defuses months of tension, the European Commission moved on Wednesday to cancel the penalties, despite earlier rulings that Lisbon and Madrid had failed to take effective action to reduce their budget deficits. It would have been the first time a fine was levied.

The issue had dragged on since May, when the commission postponed decisions because of the Spanish election. Although fiscal hawks warned that the credibility of the eurozone’s post-crisis rule book was at stake, Spain and Portugal argued against any punishment because economic growth is set to slow in Europe as a result of uncertainty over Brexit.

After the commission showed leniency to France recently, critics suggested the EU executive arm was making an example of weaker member states, Financial Times reports.

The author: Michel DEURINCK

Michel Deurinck, born in Brussels in 1950, started his career in the Belgian civil service, dedicating over 30 years to public service. Upon retirement, he pursued his passion for journalism. Transitioning into this new field, he quickly gained recognition for his insightful reporting on politics and culture. Deurinck's balanced and thoughtful approach to journalism has made him a respected figure in Belgian media.

Related posts

Leave a Comment