Reports that letters today seen as inadequate
The EU has the ability to sanction countries due to excessive deficits. European ministers met today and will reportedly decide on sanctions August 10. They're imploring Spain and Portugal to submit stronger commitments by Friday.
Spain is on track for a deficit of 4.1-4.7% of GDP this year.
A letter from Portugal's finance minister today said that imposing sanctions on Portugal would be a mistake "on the right road to eliminate the excessive deficit" and would have "a highly negative impact" on the Portuguese support for the European project.
Fining countries for deficits at a time when major questions about the EU are being asked would be complete folly.
