/Pogleed.info/ The European Union must stop structural funds for Spain and Portugal after they failed to control their debt.
This is according to a letter from the European Commission, found in the AFP agency.
Eurozone finance ministers agreed earlier this month to unprecedented sanctions against the two countries over their high budget deficits, exceeding the 3 percent ceiling of gross domestic product.
It will be the first time that Brussels has penalized member states in this way in an attempt to force them to comply with budget deficit rules. Most likely, the measure will increase the tension between them and Brussels.
European Commission Vice-President Irki Katainen said “socio-economic factors”, including high unemployment in the two Iberian countries, should be taken into account when imposing the penalty. /AFP
Brussels, Belgium
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