EU executive proposes to cancel excessive deficit fines for Spain, Portugal

Thrugelmir

When the rules get broken, bend them........:eek:

The European Commission proposed on Wednesday to cancel fines for Spain and Portugal over their failure to cut their deficits to within EU limits and gave Madrid two more years and Lisbon one more year to make the required reductions.

The decision was made by the college of Commissioners after Spain and Portugal both pleaded for clemency in letters to the EU executive.

"Taking into account past efforts of Spain and Portugal, the current challenging environment and arguments laid out in the recent requests, the college agreed today to propose a cancellation of the fines for both Spain and Portugal," Commission Vice-President Valdis Dombrovskis told a news conference.

Under EU rules, governments cannot run budget deficits higher than 3 percent of gross domestic product, a legal safeguard to ensure that excessive government borrowing does not undermine the common euro currency.

If the gap goes above 3 percent, the Commission and EU ministers set a deadline for its reduction. If a government fails to take steps to meet the deadline, it can be fined.

Portugal was to cut its deficit below 3 percent last year, but the gap turned out to be 4.4 percent. Spain was to have cut the deficit below 3 percent this year, but is likely to remain above 3 percent also next year, according to Commission forecasts.

http://uk.reuters.com/article/uk-eu-deficits-idUKKCN1071GZ

michaels

The Germanss write the fiscal rectitude rules, everyone else politely ignores them.

However the Germans get the last laugh when, as in Greece, the countries have over-borrowed and have to give up (even more) political independence so that their laws are dictated from Brussels/Strasbourg and Frankfurt. It is for their own good, democracy obviously often gives the wrong answer so we are better off governed by the unelected experts.

ManAtHome

Just practising for upcoming banking bendyism?

mwpt

michaels wrote: »

The german's write the fiscal rectitude rules, everyone else politely ignores them.

However the Germans get the last laugh when, as in Greece, the countries have overborrowed and have to give up (even more) political independence so that their laws are dictated from Brussels/Strasbourg and Frankfurt. It is for their own good, democracy obviously oftens gives the wrong answer so we are better off goverened by the unelected experts.

The bank who loaned me the money for my mortgage did the same thing. I wasn't allowed to spend more than I earn in order to obtain that loan. Evil incarnate.

CLAPTON

mwpt wrote: »

The bank who loaned me the money for my mortgage did the same thing. I wasn't allowed to spend more than I earn in order to obtain that loan. Evil incarnate.

I would have assumed that if you get a mortage, then you would indeed, be spending more than you earned.