Spain Dodges Budget Sanctions, Clearing Path to June Elections

The European Commission sidestepped a political conflict with Spain by delaying a decision on budget sanctions until after the country’s general election next month.

The commission, whose own economists recommended measures against Spain, said it would reevaluate the budgets of Spain and Portugal in “early July.” The commission gave both nations an extra year to reduce deficits to below EU thresholds.

The refusal to recommend sanctions against the two countries is part of a package of fiscal-oversight decisions that also conclude Italy, Belgium and Finland comply with the EU’s debt limit and Ireland, Cyprus and Slovenia should be removed from the excessive-deficit watchlist.

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