Extending Spain’s deficit time frame is illegal, according to European Council lawyers
A year’s extension for Spain on its allotted time to meet the public deficit target has been deemed illegal by the lawyers at the European Council. This ruling comes after current Spanish President Mariano Rajoy sent a letter asking for an extension to the European Commission President Jean-Claude Juncker. A legal report to the Council was commissioned by the presidency of the Economic and Financial Affairs Council (Ecofin), after Germany’s complaints of having saved Mariano Rajoy from a sanction during the Spanish electoral campaign. However, the Ministers of Economy and Finance of the EU will not be able to approve this extra year until the European Commission decides whether or not it is punishable by a fine of up to 2 billion euros due to breach of the public deficit target. Despite the ruling, Spanish Deputy Prime Minister Soraya Sáenz de Santamaría has stated that there is “no doubt” that no fine will be issued for missing the deficit in 2015.