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 Geplaatst: 16-08-2018 03:53:45 Onderwerp: Magniwork is actuall |
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BRUSSELS锛?July 27 (Xinhua) -- The European Commission proposed not to impose financial sanctions on Spain and Portugal over their excessive deficits but set out a new fiscal adjustment path for both countries锛?it was announced Wednesday.
Taking into account the efforts from Spain and Portugal and the current challenging economic environment锛?the college of EU commissioners suggested cancellation of the fine for both countries锛?Valdis Dombrovskis锛?vice president of the Commission锛?told a press briefing.
"Spain and Portugal made substantial efforts over the past six锛?seven years. Both countries consolidated substantially their public finances and undertook ambitious structural reforms. And we see that these reforms work. They bring about recovery锛?economic growth and job creation锛? said Dombrovskis.
Besides锛?both countries face "profound social challenges锛? he added. "Although jobs are being created锛?the unemployment levels -- especially youth unemployment -- are still too high."
"However锛?we also see that recently both countries lessened their budgetary efforts and therefore missed their budgetary targets锛? Dombrovskis warned.
Although Spain and Portugal could escape the fines锛?they have to await another possible punitive measure.
The Commission锛?the bloc's executive arm锛?is set to discuss with the European Parliament after the summer break on whether to suspend the structural funds supporting infrastructure construction in both nations.
It also hinted that the suspension could be lifted under certain circumstance.
The suspension锛?if it enters into force锛?will only begin next year. If countries remain on track with the new fiscal adjustment path锛?there is a possibility the suspension could be lifted and nations would not lose any EU funds锛?said Dombrovskis.
The Stability and Growth Pact锛?a set of EU rules aiming to prevent members from encountering fiscal problems锛?requests governments to keep their deficits below 3 percent of gross domestic product (GDP).
If deficits go beyond 3 percent锛?the Commission and the Council of the EU set deadlines for reduction. But if governments fail to take effective action to meet the deadline锛?they could be fined.
Portugal was expected to cut its deficit below 3 percent of GDP last year锛?but the gap turned out to be 4.4 percent in 2015. Spain was expected to cut the deficit below 3 percent this year锛?but is predicted to remain above 3 percent also in 2017.
After Wednesday's decision锛?both countries will be set new deadlines.
The Commission said Portugal could gain one extra year to fulfill its deficit goal锛?meaning Lisbon has to cut its deficit below 3 percent by the end of this year. Madrid was granted another two years to address its excessive deficit by the end of 2018.
Meanwhile锛?both countries have to take effective action and report on it by Oct. 15.
The Commission said it would present its proposal to EU economic and finance ministers for a final decision. "We believe these paths are realistic and both countries will be able to succeed in reaching them锛? Dombrovskis said.
The Commission's decision came as Europe faces multiple crises and anti-EU sentiment following the British vote to leave the bloc in a referendum.
Experts cautioned that possible financial sanctions would fuel eurosceptic leanings锛?particularly in Madrid and Lisbon. Besides锛?the EU ruling would seem "unfair" to both countries as France锛?which has repeatedly broken EU budgetary rules锛?was not faced with fines.
On July 12锛?the EU announced that Spain and Portugal had not taken effective action to correct their excessive deficits. According to EU rules锛?the two countries could have faced fines of up to 0.2 percent of GDP.
Both countries later submitted requests asking for the fine to be cancelled锛?while reaffirming their commitment to complying with the rules.
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