The European Commission will take the first step in disciplinary action against Portugal tomorrow for exceeding the EU's budget deficit limit, an EU source said today.
The commission will warn Portugal in a report to be issued tomorrow that it has not taken sufficient steps to correct its excessive deficit, the source said. The commission adopted a similar finding on Italy on June 7th.
Its recommendations on bringing down budget deficits require the approval of the EU's 25 finance ministers by qualified majority.
The source also said the commission was also on track to recommend on June 29th a deadline for Italy to bring its budget deficit back below the EU's cap of 3 per cent of gross domestic product.
Commission spokeswoman Amelia Torres confirmed the EU executive would debate Italy's public finances on that date.