Spain and Portugal will not be fined for its excessive budget deficit. The European Commission may, in accordance with the regulations, impose fines on the two countries by up to 0.2 percent of their gross domestic product (GDP). But now they have backed away from his earlier warning because of the outcome of the British referendum on the EU exit.
– Sanctions, even symbolic ones, could be misunderstood by the public, says EU -kommissionären Moscovici.
– it (sanctions) is not the best course of action in a time of widespread doubt he continues.
the ball now goes to the finance ministers of euro zone. And although Spain and Portugal will not have fines, there are other tools in the toolbox. One possibility that has been discussed is to pull in any part of the support from the EU structural funds for the two countries.
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