The European Commission, making use of discretionary powers it has under the Six Pack of economic governance legislation, recommends not to impose fines (technically: to impose fines of zero euro) on Spain and Portugal because of the fiscal efforts both countries have made (although not meeting the targets) and the social challenges they are facing.
The Commission also recommends giving Spain two more years and Portugal one more year to correct their excessive deficits.
Both recommendations are subject to Reverse qualified majority voting in the Council, making it unlikely that they will be resisted by the Council
Later this year, after having consulted with the European Parliament, it will decide on suspension of structural funds.
Read the Commission press statement explaining the decision here: http://europa.eu/rapid/press-release_SPEECH-16-2651_en.htm
See the recommendations here: http://ec.europa.eu/economy_finance/economic_governance/sgp/corrective_arm/index_en.htm