EU refrains from immediate fine against Spain over budget

The European Union is refraining from imposing immediate fines on Spain and some other nations, giving them additional leeway to get their budgets back within EU limits.

The EU Commission had been expected to take sanctions against Spain for not keeping its deficit under control for a fourth year running, and action had also been expected against Portugal.

Instead, the Commission said it "will come back to the situation" of the two countries in early July.

The Commission provided leeway to Italy after encouraging economic statistics and policy reform under Prime Minister Matteo Renzi. It said it will have a new report on Italy by November.

The EU wants nations to move to deficit limits of a maximum 3 percent of GDP.