Spain and
Portugal are in violation of budgeting rules. However, analysts believe that in
light of the current economic situation the two countries may likely face light
penalties. Others believe the soft penalties are due to decrease anti-EU
sentiment in the continent.
The
acknowledgement of Eurozone Finance ministers came on Monday and would go to
all the 28 EU finance ministers on Tuesday.
The members
would vote to support the commission's recommendation for penalties
unanimously.
The two
countries may submit a no request for no sanctions within 10 days along with
pledges to improve their budget outlook.
French
Finance Minister Michel Sapin said on Monday that action towards Spain and
Portugal should be soft because of the countries' enormous efforts in the
previous years. Excessive discipline, according to Mr Sapin, is not needed.
Meanwhile,
Spanish Finance Minister Luis de Guindos was optimistic the commission would
avoid "a senseless fine against Spain.
The two
countries have been under the EU's excessive deficit procedure since 2009.
Spain had cut its budget hole in half from nearly 10 per cent in 2012. Despite
the cut, it still remains off the 4.2 per cent target set by the commission and
above the 3 per cent EU threshold.