The fine if Spain does not cut the deficit of 2,000 million euros. Yesterday the European Commission has proposed a legislative package for extending the duration of fiscal policies, macroeconomic and structural reforms in member states.
The EC imposed fines on member countries.
Brussels will impose fines of 0.2% of GDP to the State that exceeds the limits of the deficit and debt, and 0.1% who ignore the recommendations made by the European Commission towards correcting their financial deficits.
These punishments are for the euro area, to prevent fiscal relaxation even in good times. It proposes an unusual measure, which is raise taxes on a mandatory basis so that public spending does not exceed the limits based on annual growth.
The sanctions will be taken immediately unless the qualified majority of other countries to vote against within 10 days.
It is intended for monitoring countries' budget imbalances by monitoring their particular economic conditions. Are implemented on the identified indicators in the trade imbalances, loss of competitiveness or housing bubbles.
With these measures, the Community seeks to control and create a series of measures to control the economy of the euro area countries. Thereby fulfilling its promise to put measures to streamline the financial action to avoid the evils past.