The Economic and Financial Affairs Council Tuesday (July 12) found that Portugal and Spain had not reduced their deficits below 3% of GDP, the EU's reference value for government deficits, by the recommended deadline. It also said efforts made by the two countries fell "significantly short" of what was recommended.
VIDEO: #ECOFIN press conference remarks by @VDombrovskis on Spain & Portugal excessive #deficit.https://t.co/UmMvq0OMmQ@UEmadrid @CE_PTrep
— EC AV Services (@EC_AVService) July 12, 2016
The Council's decisions will trigger sanctions under article 126(8) of the Treaty on the Functioning of the European Union. The Commission has 20 days to recommend and the Council will have 10 days to approve the fines.
João Ferreira, a Portuguese MEP said:
"[The council's] decision constitutes another step in the process of blackmail and external interference against Portugal and its people. It violates the rights and living conditions of our nation and is an affront to national sovereignty, democracy and the will of Portuguese people."
"What's really at stake is political pressure — of which sanctions are an instrument — to again impose the policies that have caused and continue to cause so much suffering to our people," said Ferreira.
Social Crisis
Spanish MEP Xabier Benito said: "Whilst large countries repeatedly violate official EU rules, they are punishing countries in southern Europe with those very same rules — rules which have already been used to impoverish them and will do so again with this decision.
"The richest countries in the EU are clearly exploiting the institutional framework of the EU and the mechanisms to their own advantage such as labor division, market expansion — all the while condemning the periphery of Europe to a long recession and economic stagnation," Benito said.
"The consequences of all these sanctions will only deepen the social crisis and emergency situation that we‘re in," she said.
