EU ministers to vote on Spain and Portugal deficit sanctions on July 12

The European Commission recommends fining Spain and Portugal for deficits

As leaked earlier in the week, the European Commission formally began disciplinary procedures against Spain and Portugal for failing to correct excessive deficits in 2014 and 2015.

The countries could be fined by up to 0.2% of GDP.

Finance ministers may waive the fines at a July 12 meeting if they determine the deficits were due to "exceptional economic circumstances."

However, given that the European Commission's recommendation, it will take a qualified majority of finance ministers to vote it down, which Reuters reports is 'unlikely'.

That means sanctions could be set as soon as July 27.

Last year Spain had a deficit of 5.1% of GDP and Portugal's was 4.4%.

The tone-deafness of this entire episode is appalling. It's like fining the poor for being poor. And the timing after the Brexit vote is ridiculous.

The euro is having a bit of a kick lower.