The European Union’s finance ministers will not overturn a decision by Brussels to forgive Spain and Portugal for violating budget deficit rules, according to a document obtained by Handelsblatt.
In July, the European Commission, the E.U. executive body, waived financial sanctions against Madrid and Lisbon for failing to maintain budget deficits below 3 percent of GDP. Germany’s finance minister, surprisingly, agreed to back the leniency.
The E.U. finance ministers had until August 8 to either amend or reject the commission’s decision. Under a rules change, overturning a decision by the commission now requires a qualified majority of 16 out of 28 member states representing 65 percent of the European Union’s total population.