According to EU Council President Peter Kazimir, the European Council has concluded that Spain and Portugal “did not do enough” to reduce their deficits. Despite Spain’s economic growth at 3.2%, its 2014 budget deficit came in at 5.1% of GDP, while the recommended goal was below 3%. Portugal’s efforts were also considered insufficient.
However, Spain and Portugal have 10 days to submit ‘reasoned requests’ to have their fines reduced.
The Council's decision will trigger sanctions under the excessive deficit procedure. They are based on article 126(8) of the Treaty on the Functioning of the European Union.
Since 2014 both countries have received dozens of billions of euros from international creditors.
