The European Union seems to have reversed course. After years of austerity and rigidity, for the first time in fifteen years, EU politics has officially embarked on the path of flexibility.
Confirming what has just been said was the decision of the European Commission on Spain and Portugal. The Community Executive, surprisingly, chose to recommend to Ecofin the cancellation of the fines to the two States that have not respected their budgetary commitments in the years 2013-2015.
The decision arrived today and was motivated by the "exceptional economic situation" currently underway and taking into account the efforts to reduce debt and the 'important' reforms launched by Madrid and Lisbon.
However, the two countries will have objectives to achieve and this time there will be no exceptions. Portugal will have to bring its public deficit below 3% by the end of the current year, while Spain will have until 2018 to get back on track, reducing the deficit gradually: 4,6% for 2016, 3,1 .2017% for 2,2, 2018% for XNUMX. The Commission will closely monitor the implementation of the plan
We recall that, based on the provisions of Community legislation, the two nations could have received a fine of up to 0,2% of GDP. Last Monday the Commission had announced three options: the cancellation of the infringement procedure, imposing the payment of the maximum amount envisaged or reducing it by 50%.
