EU Postpones sanctions against Spain until after election

The EU has postponed any sanctions against Spain for its deficit target miss, however it has asked for €8 billion in new spending cuts.

Brussels has said that it will wait until after the general election on the 26th June before imposing the new sanctions.

The EU has said that it wants Spain to bring down its deficit to 3.7% of GDP in 2016 and 2.5% in 2017. The Spanish deficit at the end of 2015 was 5.1% of economic output, far above its target. The country has the second-largest deficit in the entire EU.