European news
EU fines cancelled
European finance ministers have decided to cancel fines that were due to be imposed on Spain and Portugal for exceeding the budget deficit limits set by the EU.
Last month, the ministers accepted the recommendation from the European Commission that fines should not be imposed and agreed to set new deficit targets for the two countries. Under terms of the EU stability and growth pact, countries’ budget deficits should not exceed 3% of gross domestic product (GDP) although there is some leeway around the target, and fines can only be imposed on Eurozone countries. The European Trade Union Confederation welcomed the decision and called for a “change to more flexible fiscal rules”.