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A deficit procedure against Spain could weaken prime minister Rajoy (r) ahead of the 26 June election, while Italy's Renzi (l) will get more leeway (Photo: The Council of the European Union)

Spain and Portugal likely to face fines over deficit

The European Commission is to grant Italy budget flexibility but is expected to launch procedures to fine Spain and Portugal for their excessive deficits, when it publishes its specific country recommendations on Wednesday (18 May).

"Europe has recognised a further element of flexibility," Italian prime minister Matteo Renzi said on Tuesday.

He said letters were being exchanged between the commission and his government to set the budget margins the commission will allow for Italy ...

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A deficit procedure against Spain could weaken prime minister Rajoy (r) ahead of the 26 June election, while Italy's Renzi (l) will get more leeway (Photo: The Council of the European Union)

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