Deficit data in Valencia: Spain fined for misreporting

The Council on 13 July 2015 imposed on Spain a fine of €18.93 million for the manipulation of deficit data in the Autonomous Community of Valencia (Comunidad Valenciana).

The fine relates mainly to the non-recording of health expenditure and the non-respect of the accrual principle by the regional audit office.

An investigation led by the Commission found serious negligence in the regional audit office of the Autonomous Community of Valencia. This negligence led to incorrect reporting by Spain of its general government data in March 2012 to Eurostat, the EU's statistical office. The misreporting stopped in 2012.

This is the first time a fine has been imposed for data manipulation under regulation 1173/2011. The regulation was adopted in 2011 as part of a strengthening of EU fiscal surveillance.

Data related to government deficit and debt are an essential input to economic policy coordination at EU level. The Council, acting upon a recommendation by the Commission, may decide to impose  a fine on a euro area member state for the purposes of enforcing budgetary surveillance. The aim is to deter misrepresentation of deficit and debt data, whether it is intentional or due to serious negligence.

The decision was taken at a meeting of the Agriculture and Fisheries Council, without discussion.

• Decision imposing a fine for the manipulation of data in the Autonomous Community of Valencia