The European Commission just postponed a decision about whether or not to impose fines on Portugal and Spain for their deficits. The decision will be in July and at that time, the Commission will decide whether to take “decisive action.” If they decide not to take decisive action then they will start a process to impose sanctions.
As EU finance commissioner Pierre Moscovici said at a press conference, “The effort must be led in a strong way and a strong pace.” Portugal needs to bring its deficit down to 2.3% of GDP and Spain needs to reduce its by 3.7% this year and 2.5% in 2017.
They have created the postponement so as not to interfere with the upcoming elections in Spain. Spain will be holding general elections on June 26.
