Brussels forgives Spain for excessive deficit despite exceeding 3%

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Brussels forgives Spain for excessive deficit despite exceeding 3%

The European Commission states that it is not justified to start a file because the deviation, even if not close to the reference threshold, is temporary and will be reduced to 3% this year and 2.8% in 2025 .

The European Commission has decided one excessive deficit file to Spain, despite ending last year with a budget deviation of 3.6%six-tenths above the limit set by the budgetary rules.

Brussels has concluded this it is not justified to start a file because the deviation, despite not being close to the reference threshold, is temporary and is forecast to be reduced to 3% this year and 2.8% in 2025.

Spain therefore avoids the minimum budget adjustment of 0.5% of GDP per year (7.3 billion euros) that Brussels would have demanded in the event of a file, although it will have to go gradually reducing budgetary slippages.

“In any case, the European Commission will continue to monitor budgetary developments in Spain will reassess the situation in the autumnsaid the European Commissioner for the Economy, Paolo Gentiloniduring a press conference.

Of the twelve countries exposed to this procedure, Brussels has decided to initiate proceedings against seven of them Italywhich records the largest deficit in the EU (7.4% of GDP) and France (5.5%), as well as Belgium, Hungary, malt, Poland And Slovakia. Plus, it keeps the one open that started in 2019 Romania because the country has not taken measures to channel its deficit.

On the contrary, next to Spainthe Czech Republic, Estonia, Slovenia And Finland They have been dismissed from the file because the European Commission has taken into account relevant factors such as the national debt situation, the evolution of the economy or investments in defense.

Source: EITB

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