FX.co ★ OECD does not back sanctions against Spain and Portugal

OECD head Angel Gurria urged the European Commission not to impose sanctions on Portugal and Spain for exceeding their budget deficit targets, saying it was the "the last thing we need", especially in circumstances where Europe is trying to recover after Brexit.
The European Commission initiated formal disciplinary procedures against Spain and Portugal for their excessive deficits in 2014 and 2015.
"We face new challenges, of migrants and refugees, terrorism and Brexit," Gurria said.
He added it would "create divides among us by applying sanctions which are not even sanctions because they have to do with the past and not with the future".
The Council of EU finance ministers will decide on the Commission's recommendation at their next meeting on July 12.
Spain and Portugal have been accused of exceeding the EU's deficit limit set in 2013. Portugal's 2015 deficit was 4.4% of GDP, while the recommended goal was 2.5%. Spain smashed its 2015 deficit target of 4.2% of GDP and reached 5.1%.