As expected yesterday by the Eurogrupo president, Jeroen Dijsselbloem, the euro zone member states adopted the European Commission (EC) recommendations which concluded that the two countries had not made enough budget efforts and so failed the targets to leave their Excessive Deficit procedures (EDP), which for Portugal, was to be in 2015.
"The Council’s decisions triggered the sanctions under the EDP” Ecofin said in a communiqué, adding that the Commission now has 20 days to propose the amount of the fine, which could be up to 0.2% of each country’s Gross Domestic Product (GDP).
Portugal and Spain now have 10 days to present their arguments to reduce the fine, which, according to the European rules can be reduced to zero.
"I am sure we are going to have an intelligent result at the end", said the Slovakian finance minister, Peter Kazimir, who is chairing the Ecofin Council in this second half of the year.
On his way into today’s Ecofin meeting, Portugal’s finance minister Mário Centeno acknowledged that after the discussions last night in the Eurogrupo, "the Portuguese government’s expectations" were that the Commission’s recommendations would be followed.
This punitive action is so patently unfair to Portugal. There hasn't been a more compliant, more responsible, EU country than Portugal in terms of managing its hopelessly difficult financial situation over the last half decade. I have one question: has anyone considered Portexit?
By Robert Stinerock from USA on 12 Jul 2016, 15:06
What is the point in giving countries fines who already are in debt ?
By Colin. from Beiras on 12 Jul 2016, 16:00
Violations of the 3% rule (number of times) between 1999 and 2015:
11 france
10 greece poland portugal
9 uk
8 italy
7 hungary
5 ireland germany
european union WAS a great idea! But is over now! The hypocrisy and abuse are being shout loud within our borthers! Our union passion has craken beyond repair!
After our greatest ally decided to leave UE, enforcement is the new rule! Rest in peace Europe,
the dream is over!
Portexit???? No....
PORTFREEDOM
By José from Porto on 12 Jul 2016, 17:40
Portexit would be brilliant. I wonder how many more jobs, especially manufacturing jobs, would've been created in Portugal had they never joined the euro to begin with. Their labour would've been cheap relative to the euro while keeping the quality of the workmanship high. Both desirable variables any business looks for when setting up shop in a new country.
By Jorge from Other on 12 Jul 2016, 19:27
How on earth does this action by the European Union add any value to Portugal. It is senseless, counter productive and petty in its punitive nature. It's no wonder that there is cynicism about the EU. The sooner countries take control of their own affairs and end this nonsense the better. Total insanity.
By Mark Fletcher from Algarve on 12 Jul 2016, 22:23
Helps pay towards Brussels 5* lifestyle
By Tom Bailey from UK on 13 Jul 2016, 06:44
There will never be a Portexit - Portugal needs the EU more than the EU needs Portugal. Only the demise of the EU will offer an exit and that will be very messy. Think Brexit on steroids. The financial situation isn't hopeless, but it wont be helped by punative measures. Never mind, if Portugal are sanctioned with a fine perhaps good old Durão Barroso can dip into the Goldman Sachs coffers and make a contribution as well as filling his own pockets?
By Pat from Lisbon on 13 Jul 2016, 12:52