Moscovici refers decision on excessive deficit later – Express

Go or not Portugal exit the excessive deficit procedure earlier this year? The question remains unanswered, at a time when the European Commission already has all the elements to decide.

“A little patience,” he asked the Commissioner for Economic Affairs told reporters. Pierre Moscovici no commitment for now with a final decision to Portugal and excuse is also talking about the possibility of sanctions if the country does not leave the EDP.

“I will not ever make comments today about decisions that will be taken later, “said the French commissioner, adding that the” numbers that are on the table are important “and it is on this basis that Brussels will decide.

Brussels does not advance decisions, but figures released this morning in spring economic forecasts back to reinforce the idea that it is hard to leave.

“the overall deficit, as reported by Eurostat, 4.4% of gross domestic product in 2015. excluding the extraordinary measures (one-off), in particular those linked to Banif, the deficit would fall to 3.2%, which is above the goal for 2015, “says the commissioner, adding, however, a “but”:. “the projections point to 2.7% of GDP in 2016 and 2.3% of GDP in 2017″

to exit the EDP, Portugal would have achieved a nominal deficit below 3% of GDP, keeping this parameter on a downward trend in the coming years. The first condition was not met, but the spring economic forecasts also show that the second can occur.

Moscovici says that the decision on the procedures for deficit Excessively will be taken “later” and “country by country “

according to the rules and what has been the interpretation of the European Commission, the extraordinary measures capitalization of banks. – as was the case with Banif – they are also taken into account and may prevent the output of the Excessive Deficit Procedure. However, if expunged this value the nominal deficit was below 3% there would be no worsening of the EDP, that is, there would be no place to sanctions.

This is an issue that, in the Portuguese case, to be confirmed and it depends on the decision of the Commissioners. No injection at Banif, the deficit would have been 3.03% in, say Brussels technicians. But add that there are two extraordinary operations have increased this figure to 3.2% that speaks Moscovici.

One relates to EUR 130 million related to the Portuguese contribution to the European Fund Resolution . Due to the intervention in the New Bank and Banif, the European authorities have given an exemption to contribute to Portugal until 2024 and this represented a spike in revenue this amount last year. This point was indeed explained by Mário Centeno in the letter sent to the European Commission during the negotiation of the budget outline.

The other extraordinary operation has an impact of 150 million and results from the change of the IRC on funds . investment in 2015

the projections released Tuesday show that unlike the nominal deficit, the structural deficit – excluding the economic cycle and extraordinary measures – is deteriorating and will continue to rise next year. Brussels warns of the lack of fiscal consolidation measures.

Asked about with the deterioration of the structural deficit the Commission will ask already further measures, Moscovici also declined to speak. He said nothing about the so-called Plan B and the need to now move forward with further action.