EC Not To Stop Funds for Spain, Portugal in 2017

On Wednesday, the European Commission decided not to stop the funds for Spain and Portugal next year, in spite of the fact that the two countries are in violation of the budget rules of the EU, reported Reuters.

The procedure requested on the proposal of the EC for stopping some of the European structural and investment funds is no longer in existence and there will be no such proposal, read the statement of the EC, adding that the procedure for the imposition of a sanction will be stopped temporarily.

In the summer, the EC decided not to impose fines on Spain and Portugal as part of the same procedure for sanctions caused by the excessive deficit and the lack of timely corrections of fiscal violations on the part of the two member-states.

The EC warned Italy, Portugal, Spain and five other member-states that their budgets for next year are at risk of violating the budget rules of the EU.