Spain, Portugal urge EU Commission to present proposal for new fiscal framework

MADRID (Reuters) - Spanish Economy Minister Nadia Calvino on Monday said Spain and Portugal were urging the European Commission to present its proposal on a new fiscal rule for the bloc.

EU finance ministers have been debating how to adapt the fiscal framework to the new reality of huge public debt and large investment needs to combat climate change. Current rules force member countries to curb deficits and rein in public debt.

"We urge the EU Commission to come forward as soon as possible with draft legislation to enable us to reach an agreement in the second half of the year," Calvino told a joint news conference with Portuguese Finance Minister Fernando Medina.

"Both Spain and Portugal are an example, in the sense that through a responsible fiscal policy with social justice and carrying out the structural policies and modernisation policies of our countries, we are managing to very quickly reduce the deficit and public debt in terms of GDP," Calvino added.

In September, the International Monetary Fund said the EU should set up a fiscal capacity to pay for EU public goods, link the pace of debt cuts to individual country risk and let independent fiscal councils play a bigger role in policy.

(Reporting by Inti Landauro and David Latona; Editing by Andrea Ricci)