Stability and Growth Pact: update on the fiscal situation of Spain and Portugal

EU News 245/2016

Brussels, 7 July 2016

As announced in its Communication of 18 May, the Commission came back today to the fiscal situation of Spain and Portugal. The College of Commissioners confirmed that Portugal did not correct its excessive deficit by the deadline of 2015 and that Spain is unlikely to correct its excessive deficit by the 2016 deadline. These deadlines were set by the Council in 2013. The College therefore adopted recommendations for Council decisions under Article 126(8) of the Treaty on the Functioning of the European Union (TFEU) establishing the absence of effective action by Spain and Portugal for the years 2014 and 2015. Both Spain and Portugal will require new deadlines to correct their excessive deficits and the adoption of today's recommendations is the necessary legal step to do so. The Commission will propose a new fiscal adjustment path for each country at a subsequent stage.

Source and additional information:
http://europa.eu/rapid/press-release_IP-16-2375_en.htm?locale=en

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