The Council of the European Union decided to cancel budget fines for Spain and Portugal.

The EU decided not to fine the countries for breaching the EU deficit limit of 3 percent GDP.

As the Commission recommended, the Council calls on Portugal to put an end to its excessive deficit by 2016, and that Spain does so by 2018 at the latest.

Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: “Today's decisions reflect an intelligent application of the Stability and Growth Pact. By giving more time to Spain and Portugal to bring their public deficits below 3%, the Council sets new credible fiscal trajectories, which will contribute to strengthening both their economies and the euro area. Stability and Growth require a strong determination to put public finances in order. I trust that Spain and Portugal will respond accordingly to the collective decisions by the Commission and the Council.”