Portugal  

[...] Portugal exited its economic adjustment programme in June 2014. 

However its general government deficit came out at 4.4% of GDP in 2015, and the deadline was missed for correcting the deficit. The overshoot was largely due to a financial sector support measure (resolution of Banif), though the deficit net of one-off measures would in any case have been above 3% of GDP. The cumulative improvement in Portugal's structural balance in the 2013‑15 period is estimated by the Commission at 1.1% of GDP, significantly below the 2.5% recommended by the Council. When adjusted in the light of revised potential output growth and revenue windfalls or shortfalls, it is even slightly negative. 

Overall, since June 2014 the improvement in Portugal's headline deficit has been driven by economic recovery and reduced interest expenditure in a low-interest-rate environment. The country's general government gross debt has broadly stabilised. It amounted to 129.2% of GDP at the end of 2013, 130.2% of GDP in 2014 and 129.0% of GDP in 2015, according to the Commission's spring 2016 economic forecast. 

The Council concluded that Portugal 's response to its June 2013 recommendation has been insufficient. Portugal didn't correct its deficit by 2015 as required, and its fiscal effort falls significantly short of what was recommended by the Council. 

Spain 

[...] Spain exited the financial assistance programme for the recapitalisation of its financial institutions in January 2014. It had used close to €38.9 billion for bank recapitalisation, plus around €2.5 billion for capitalising the country's asset management company. 

Spain's general government deficit amounted to 5.9% of GDP in 2014 and 5.1% of GDP in 2015. above the intermediate targets set by the Council. A relaxation of fiscal policy in 2015 had a large impact on the fiscal outcome. The cumulative improvement in the structural balance over the 2013‑15 period amounted to 0.6% of GDP, significantly below the 2.7% recommended by the Council. When adjusted in the light of revised potential output growth and revenue windfalls or shortfalls, it is even lower. 

Over the 2013‑15 period, low or even negative inflation made achievement of the fiscal targets more difficult, but this was largely offset by higher-than-expected real GDP growth. A low interest rate environment has also helped Spain reduce its deficit. The Commission's 2016 spring economic forecast projects a general government deficit of 3.9% of GDP in 2016 and 3.1% of GDP in 2017. Spain is therefore not set to correct its deficit in 2016 as required. The debt-to-GDP ratio declined from 99.3% in 2014 to 99.2% in 2015, thanks to sales of financial assets. According to the Commission's 2016 spring forecast, the debt ratio is expected to rise to 100.3% in 2016 and decline thereafter. 

The Council concluded that Spain 's response to its June 2013 recommendation has been insufficient. Spain didn't reach the intermediate target set for its headline deficit in 2015 and is not forecast to correct its deficit by 2016 as required. Its fiscal effort falls significantly short of what was recommended by the Council, and it even relaxed its fiscal stance in 2015.