No fine for Spain

THE EU executive has backed down on its pledge to sanction Iberian duo Spain and Portugal for failing to meet deficit targets, with commissioner, Pierre Moscovici, citing current anti-EU sentiments sweeping the continent as the main reason for the about face.

“Sanctions, even symbolic ones, would not have been understood by the public,” he said. “It’s not the best approach at a time when doubts are widespread in Europe.”

The landmark move has thus been vetoed once more, with Moscovici twittering about “new fiscal paths” for the debt-ridden nations, which both posted budgets exceeding the current EU limit of 3 per cent of GDP for a few years.

“Spain and Portugal have come a long way having experienced severe economic and financial crises and have restored financial stability thanks to major fiscal adjustment.” said EU Commission Vice-President, Valdis Dombrovskis.