Sunday, July 3, 2022

German EU Official Urges Action Against Spain, Portugal

By on July 4, 2016

FILE - This July 31, 2012 file photo shows the euro sculpture in front of the headquarters of the European Central Bank, ECB, in Frankfurt, Germany. The eurozone economy has finally recouped all the ground lost in the recessions of the past eight years after official figures Friday April 29, 2016. showed that the 19-country single currency bloc expanded by a quarterly rate of 0.6 percent in the first three months of the year. (AP Photo/Michael Probst, File)

The euro sculpture in front of the headquarters of the European Central Bank in Frankfurt, Germany. (AP Photo/Michael Probst, File)

BERLIN – Germany’s European Union commissioner pressed Monday for action against Spain and Portugal for failing to meet their budget targets, arguing that Brussels must act to maintain its credibility.

The EU’s executive Commission refrained in May from imposing immediate fines, saying it would revisit the situation in July.

The EU wants countries to keep their budget deficits below 3 percent of their annual GDP. Though countries can be fined up to 0.2 percent of their GDP if they fail to implement measures to meet the limits, no nation has yet been fined.

“If the Commission wants to preserve its credibility on upholding budget rules, we have to approve sanctions against Spain and Portugal,” Commissioner Guenther Oettinger was quoted as telling German daily Bild. “If we give ourselves common rules, they must be kept to.”

Portuguese Prime Minister Antonio Costa, whose center-left government is reversing previous austerity measures with the support of the Communist Party and radical Left Bloc, is fighting possible sanctions.

Costa said Monday that the 2015 budget deficit, when stripped of one-off measures such as rescuing a failed Portuguese bank, came to 3.2 percent – only slightly over the limit.

“It makes no sense to sanction Portugal,” he told reporters in Lisbon. Costa has warned that penalties could knock Portugal’s recovery off track as it aims to get the deficit below the limit this year.

You must be logged in to post a comment Login